It is a great achievement if you run a business of your own, whether modest or big. Undoubtedly, as a business owner, you have a lot of responsibility as you proceed with your daily activities. One way to ensure you are able to fulfill your responsibilities come rain or sunshine is by delegating some risks to an insurance company. Indeed the law has provided that any business must have insurance. This is usually known as compulsory insurance.
Compulsory business insurance
There are two types of insurance that a business cannot avoid if it has employees and motor vehicles;
Workers compensation insurance
This insurance must be taken if you employ staff in any capacity. It covers the costs that are likely to arise in the case of a work-related accident, injury or illness. Apart from the cost, it is also used to pay the affected worker lost wages and claims that are a consequence of the illness, accident or injury.
Compulsory third party insurance
For motor vehicles, this insurance is compulsory. It only covers personal injury sustained by a third party in case of an accident. In addition to the compulsory insurance, there are many risks that your business is subjected to in the course of its operations. The risks suffered in your particular line of business definitely differ from the risks other businesses are exposed to.
Common business insurance
Here are some common risks businesses are exposed to and thus they should be protected from;
Fire- Almost every business can suffer if a fire guts its premises. You can easily avoid the losses by having your business insured.
Liabilities- There are liabilities that could arise due to negligence. These can affect your employees, the public or customers. You can insure against these liabilities to avoid paying for injury or damages caused during your operations.
Interruptions- Sometimes your business might suffer the unfortunate incident of a fire. You might end up being out of business for a few days as you procure new premises. Your business can be compensated for the time you are not doing business if you have an interruption policy.
Theft- Your business could handle a lot of cash or it could have physical or even intellectual property of great value. Such property should definitely be insured against theft.
You can have a risk analysis done in order to know what you need to insure. Also, insurance works better if you have measures to reduce risks in place. These measures will also reduce the premiums you have to pay to the insurance company.
For more information, talk to a professional like Westralian Insurance.