No matter what type of business you run, there will always be a range of risks that need to be considered and managed.
Some risks can be eliminated entirely by adjusting your business practices, but there are many risks which are partially or completely out of our control.
For those risks which we cannot eliminate or control completely, the next step to consider is business insurance.
Types of Business Risk
There are various types of risk which must be considered by a business. Statistics show that new businesses are generally at greatest risk, but it is also important for established businesses not to become complacent about risk.
Some of the major risks faced by Australian small businesses are as follows:
Property Damage & Personal Injury
This category of risk can be split into two separate but equally important areas. The first is property damage and personal injury caused to your own business and staff, and the second is damage or injury to others caused by your business.
Damage or Injury to Your Own Business & Staff
This risk will vary depending on the type of business you run. If you are running an office based business the risk may be relatively low, but if you run a factory or trades business it could be one of your major risks.
Damage to your own property can be managed through property insurance. Whilst no policy can stop the damage of course, it can cover the costs of such damage to your business.
Damage or Injury Caused By Your Business
This is one of the most serious risks for any business. If your business is found to have acted negligently and caused property damage or personal injury to another person you could be up for serious costs.
Thankfully this risk can be covered by public liability insurance. This form of insurance will cover the costs of such a claim provided that it is covered by the policy wording.
Loss of a Key Person
Finding and keeping the right staff is one of the biggest challenges for any business. Whilst you may be able to keep them on board by offering a competitive salary package, you cannot control their health and ability to work.
If you have a key staff member who has a major impact on the revenue of your business, insuring against their loss or inability to work for a period of time is vitally important.
This risk can be managed through key person insurance, which can cover you business in the event of a key staff member’s inability to work due to injury, illness or death.
Managing Risk via Insurance
No form of insurance can stop a particular event from happening, but it can help to manage the financial consequences of such an event.
Of course it is better to prevent such events from happening through prudent business processes and procedures, but there are many risks which are simply outside of anyone’s control.
A qualified insurance broker or adviser will be able to work with you to assess your business and identify any risks which can be managed through insurance.
To be put in contract with a qualified insurance professional the first step is to contact us here at Public Liability Insurance Australia.
You can complete our online quote request if you already know what types of business insurance you require, or you can simply call or email our office with your questions.
Insurance is one of the most effective ways of managing risk within your business, and we are here to help you to protect yourself and your business in the most cost effective way.