It is not merely a business' employees who need to be insured; there are many other types of business insurance designed to cover a range of potential risks, including those faced by your customers, to your premises and even for periods of time when your business is unable to continue its normal activities. Since the insurance requirements of businesses tend to vary significantly, insurance companies are often prepared to amend your insurance policy to cover specific assets or unique elements of your business, albeit for a higher premium. Although it is possible to insure anything from engineering faults to damaged stock, some of the more common types of business insurance include:
> Public Liability Insurance - gives your business protection against claims made by members of the public, due to injury or illness caused in some way by your business. Although public liability insurance can be purchased for businesses of all sizes, it is most commonly for small businesses. This is to offset the financial damage, and impaired reputation, from which an uninsured small business would suffer if they could not afford to compensate a customer. This insurance is more commonly claimed on than other types, but if you have not claimed recently and are actively health and safety conscious, your premiums should not be excessive. Many small businesses take out public liability insurance with a minimum value of around $5,000,000 to $20,000,000 dependent upon the type of business they operate.
> Business Interruption Insurance - compensates a business for any loss of income which occurs as a direct result of the business being unable to conduct normal trade, due to the detrimental effect of events outside the business' control. When applying for this insurance, your insurer will require you to carefully estimate a time-scale that predicts the length of time for which an interruption would negatively affect your business; this is important, since an inaccurate time-scale may mean you are paying too much for insurance, or risking being under-insured in the event of a claim.
> Property Insurance - Your business' premises may be among your most substantial assets. As a result, damage to these assets can be extremely disruptive to daily business activities, and contribute to a period of instability for employees. If your property is not insured, this instability can last a relatively long time whilst you obtain sufficient financing to make repairs. You may be able to make a claim on your property insurance in the event of damages caused by a natural disaster, criminal activity, external vehicle, or pipes and cables surrounding the premises. Depending on your insurer, property insurance will either include contents insurance or cover only the structure of the building itself.
> Money Insurance - If your business frequently holds or transports significant amounts of cash or cheques, you may wish to take out a value of money insurance to protect against potential loss or theft. Premiums tend to be lower for firms who keep only small sums of money on their premises and those who transport money less frequently.
> Key Person Insurance - Your business' greatest strengths may lie with the expert knowledge and contacts of one or a few individuals, and should they become ill or die, the stability of your business may be jeopardised. Key person insurance can support your business financially whilst this person recovers or a replacement is sought. This is common for small businesses which would struggle without a particular staff member. Payouts compensate the business for loss of revenue, and not for the injury which the person has sustained; this would need to be claimed from the injured person's own insurance, or the business' employee liability insurance if the accident occurred in the workplace.
> Product Liability Insurance - Businesses that supply, deliver or sell goods, even in the form of services or repairs, may need cover against claims of goods causing damage, injury or death. Product liability cover protects you if any of these events happen to another person or business by the failure of a product you are selling.
> Theft and burglary - Theft insurance generally covers your business against loss or damage to your stock and contents if someone forces their way onto your premises, or uses deception to get in to your premises. It usually does not cover cash losses, which can be covered separately.
> Tax audit insurance - Covers costs incurred by your accountant, or registered tax agent, when notified by the Australian Taxation Office to conduct an audit or investigation into your tax liability.
> Machinery/Equipment breakdown - Covers machinery and equipment used in your business. Some policies may also cover stock damages as a result of the breakdown.
> Goods in transit/property in transit insurance - Covers the loss of, or damage to, goods you buy, sell or use in your business when they are in transit by road, rail, air and sea. It also covers damage to property – such as tools and equipment – while in transit within a defined set of geographical limits.
> Computer and electronic equipment - Covers accidental damage or loss to computers and electronic equipment and data.
> Glass - Covers the replacement of external and internal glass, as well as specified glass items.
> Commercial vehicle - Many different types of policies are available, so make sure you understand the options before making a decision. Consider the three most common options below:
