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How business insurance can help a business

October 2, 2019

Doing business is risky, since there are many factors involved which cannot be controlled by the business owner. Most business owners invest a lot of their time and money in starting the business and running it. Often due to factors beyond the control of the business owner or management, events may occur which can cause financial losses or damage, for which the business owner will be held responsible. Hence business owners are often advised to take compare business insurance online today to protect their business against an unexpected liability. Since the insurance is an expense, many business owners would like to ask is business insurance helpful?

 

Depending on the type of business and its size, the type of insurance required will vary. For example if a business has one or more employees, under Australian law it is compulsory for the business owner to purchase worker’s compensation insurance. The employer is supposed to provide safe working conditions for their employees, so that they do not fall ill, or suffer from injuries because of the work they do, or workplace. In case of illness or injuries, the employer can be held liable to pay compensation, and the insurance company will pay compensation to the worker on behalf of the employer.

 

Many businesses are providing products or services which can cause injuries or even death in case they malfunction or are not conforming to the relevant standards. Hence in Australia, it is compulsory for businesses which are dealing with certain products or services which can cause injuries or death to take public liability insurance. So in case of death or injuries, the business will not have to pay the compensation out of its profits, the insurance company will pay the specified compensation after evaluating the claim.

 

Most business owners are owning one or more vehicles, and they are required to pay vehicle insurance for personal injury to third parties. This insurance is part of the vehicle registration expenses. There are other insurance option for businesses which are optional depending on the size and assets of a business. If a business owns a building or other business premises, they can take insurance to protect the premises and its contents are calamities or other kinds of damage like fire, earthquake, floods, malicious damage, explosions, storms. This can help them pay for repairs in case of a calamity.

 

Since most business premises are deserted at night, they are likely to be targeted by burglars or robbers, who will often steal anything of value. Hence business owners, especially those who have valuable stock and other items should get insurance against burglary, so that they will not suffer major financial losses, when if they are robbed or burgled. Stock damage insurance is used in case the business deals with perishables like frozen foods, which will get spoiled if the freezer or other refrigeration equipment will get malfunction. Businesses can also get insurance for their electronic equipment and machinery in case of manufacturers or similar businesses, so that they get compensation in case their expensive equipment malfunctions due to unspecified reasons.