Types of Business Insurance

Ever wondered the types of insurance you'll need when setting up your business? No matter how big or small your business is, it will face a variety of risks as long as it is operational. Therefore, it is prudent to ensure that you, your assets and staff are protected from financial loss in case of an accident. 

Below are the types of insurance you should consider taking. 

Computer and electronic

This insurance covers any harm that may result in the loss of your computers, electronic transmitters and Supervisory Control and Data Acquisition (SCADA) systems. In addition, you may take up a data breach policy to protect you against financial losses in case of a data breach. 

Machinery breakdown 

Supposing you are involved in the manufacture of textiles. It would be next to impossible to prevent occurrences of machinery breakdown. A machinery breakdown cover is tailored to suit the needs of companies in the processing and manufacturing industries that deal with various machines. 

Professional Indemnity

Professional indemnity insurance provides cover in the event that your client suffers losses due to your negligence, errors or omissions. In Australia, some clients may demand that you have the cover before seeking consultation services. 

Business interruption

The policy covers you if you are unable to transact your business as usual due to a disaster. The cover is essential if your business is located in an area prone to disasters such as fire, typhoons or floods. 

Employee fraud

Some of your employees may attempt to defraud your business. An employee fraud policy covers you against such risks. However, the insurer must verify that you took all possible measures to prevent the occurrence. 

Deterioration of stock

If you plan to invest in the food industry, you must be adequately prepared for various risks. For example, supposing your freezers stop working. A deterioration of stock policy will prevent you from incurring losses due to the damaged produce. The policy will also cover you against the expiration or damage of goods in a warehouse. 

Public liability

The policy covers loss of property, accidental body injuries or accidental deaths that happen as you conduct your business. It is an essential cover for high-risk businesses such as those in the construction, transport or industrial sector. 

When settling for a business insurance cover, ensure that you shop around. Consult with an experienced insurance broker to know which companies have the best policies, terms and conditions. Avoid defaulting on your premiums since this might affect your chances of receiving compensation.