Do You Really Need Business Insurance? Victoria Park Accountant Tips

When it comes to operating a business, there are many things to consider.

Decisions that will impact the business short and long-term.

As finance and accounting experts, we often find ourselves chatting to our clients about the importance of insurance.

In particular, who needs it.

So, today we are looking at business insurance and at number of tips to help you navigate your way through the topic.

After all, it’s one that can cause a little confusion at times

What is business insurance?

While business insurance may be a known term, there are different types.

In general, business insurance is simply a layer of protection for a businesses.

Typically, it is crucial for a business to have insurance incase anything in the business goes wrong.

Whether it was deliberate or an accident, the insurance is what can save you.

What insurance does your business need?

While every business is different, there are a number of insurances that most businesses need.

This would include professional liability and public liability.

Other common ones would be vehicle insurance, equipment insurance and workers compensation.

If something was to happen in those areas, the person or the business are liable for those costs. In some cases, as extreme as they may sound, an event like that could collapse a business.

As we said, every business is different so there are different options out there.

For example, if your business works by contracts, contract insurance would be an ideal option.

That means that if a business may not be able to pay for a completed job, you are covered by the insurance and will still get paid for your work.

With businesses and organisations often experiencing rapid changes, it is highly recommended businesses review their insurance on a yearly basis.

Not doing so could be costly.

In fact, reviewing the business insurance every 12 months could possibly save you money.

It will ensure you only pay what you need to but also make sure that everything is covered and protected.

Where do you find the right business insurance?

In a previous blog we spoke about trust and accountability when choosing an accountant. The same goes for an insurance broker.

One way to get insurance is to hop online and sign up for general insurance.

That said, we would always recommend actually sitting down with someone face to face.

This will allow them to learn your business, ask all the questions, and make the recommendations that will best fit the circumstances.

They will also be the ones that handle any issues if they arise.

For us, we recommend working with West Coast Insurance Services.

Alan will not only apply his 20+ years of industry experience to make the best recommendations but will also be there every step of the way.

Either way, whatever the decision is for a certain business, it is highly recommended that business insurance is something that is not forgotten about and a topic that is addressed yearly for every business.

The Cost

Some businesses avoid getting the proper insurance due to the cost of having it in place.

And, while insurance does cost money, the impact it can have on a business in the case it is needed could be the difference between staying in or going out of business.  

There’s another point worth mentioning.

If business insurance seems too expensive, that is something that is probably worthwhile to consider before starting the business.

The most important part is to ensure that the business owners are educated on the topic.

 Getting professional advice is a great place to start.

For any further questions regarding business insurance, contact us and Eventum Consulting, we would be honoured to help.