When it comes to business insurance many small businesses typically look at cover for liability and for their building and business assets, like stock and contents.
But did you know when it comes to business insurance there are a variety of other covers that can provide protection from many different risks?
Here is our top pick of the business insurances you might not be aware of and how they could help your business when you may need it most.
If you own a high street business, chances are you’re going to have a nice large, shiny, expensive-to-replace shop front window. For anyone who has had to replace a window due to an accident or malicious damage, you’ll understand the impact it can have on your finances, often costing thousands of dollars.
Beyond the broken window, there are other related expenses that you may need to consider like the damage caused to the window frame, damage to your stock, repairing or replacing signage and the resetting of security alarm systems. This is where Glass cover may help with the pane.
Glass cover is an option that can be selected as part of your Business Insurance policy. For some businesses it may even be a requirement by your landlord. Glass cover can provide cover for:
- Repair or replacement of your shop-front window
- Repair or replacement of internal glass (including shelving, fixed mirrors, counters, ceramic and porcelain items
- The installation cost of temporary shuttering
- Replacing electrical signs
- Replacement of damaged property
Make sure you also have your Public Liability insurance in place to protect your business in case a customer, supplier or member of the public is injured from the broken glass.
An unexpected breakdown
For businesses that rely on machinery or equipment to get the job done, Machinery Breakdown insurance provides valuable protection for when things don’t go to plan. It can cover the cost of repairing or replacing different types of machinery like boilers, air conditioners, pressure vessels, drillers and grinders- the list goes on and on!
Machinery Breakdown insurance can also cover additional costs like the hire of temporary equipment and the express delivery or air freight of replacement parts. An optional extension is available to include coverage for the deterioration of stock if foodstuffs are spoilt due to your refrigerator breaking down. This is an important extension of cover for businesses who rely on storing stock in cold storage.
Keep in mind that this type of policy does not cover the costs of repairing or replacing machinery that breaks down due to natural wear and tear, or if the equipment has not been maintained correctly.
Insuring an Interruption
Think of Business Interruption insurance as your ‘business back up’ cover. Bouncing back after a major disaster can cost your business massive amounts of time and money. So how would your business survive if you had to shut up shop due to an unforeseen event?
Business Interruption insurance is designed to compensate you for the money you lose when you are not fully operational due to an insured event. It provides much needed financial assistance by covering:
- Loss of turnover due to damage to your own premises-assisting with the ongoing operating expenses
- Business relocation costs
- Training costs for operators of replacement machinery
- Loss of turnover due to damage to a supplier’s premises, causing interruption to your business operations
An unhandsome ransom
Cybercrime is one of the newest risks that small businesses face and can impact any type of business with an internet connection. With more and more businesses transacting online, there’s been significant increases in ‘data ransom’ attacks, which can greatly affect the ability of a business to operate.
While Cyber Liability insurance won’t stop a ransomware attack from happening, it can provide a financial safeguard against damage following an attack. It can also include cover for extortion payments, investigation costs and legal expenses involved with data breaches.
Let’s talk about tax
If the thought of a phone call from the tax man sends you into a panic, then reduce your worry with Tax Audit insurance. While your books may be in order, the process of preparing the required documents for an audit can cost time, money and unwanted stress.
Tax Audit Insurance covers a business for specified costs if it is selected by the Australian Tax Office for auditing. The policy covers the costs of accountants and other professional fees incurred in the course of an audit.
Having the services and expertise of an external accountant or a similar professional to assist with an audit can be costly, but with the right Tax Audit insurance in place, you can minimise the cost of an audit to your business. An investment your nerves will thank you for!
The Final Word
Every business has its own insurance needs, depending on the industry you operate in, the size of your business and the kind of business you run.
You may not need to cover everything but take the time to assess the risks your business is exposed to and what insurance policies you need to protect the things that matter most.