Business Insurance is not just for large corporations with hundreds of employees. There are a whole host of micro companies operating in Australia today – some with only one member of staff – however, their need for cover is no smaller as a result.
In fact, when you consider the large swathes of cash and abundance of legal advice that is at hand for a large company, it can easily be the smaller ones that need the most protection.
The most recent findings from the federal government show that small businesses make up 96 per cent of all enterprises operating in Australia today. That’s almost 2 million business owners, each of which will have a whole spectrum of different responsibilities – and risks.
This is because no business is the same. Everything from location, employees, resource availability, all the way down to the tools you use on a day-to-day basis, all play a part in determining what makes a business unique.
Not all business owners understand the dangers of operating without insurance, however, and this leaves them open to financial threats that can make their ventures short lived.
Here are three micro businesses that may be risking underinsurance:
Garden maintenance and tree removalists
The size of your operation as a gardener or tree removalist will not make you less likely to get injured while on the job – or less prone to financial damage should accidents occur.
While gardeners are able to reap the benefits of working in the great outdoors, not everything is rosy for a small business in this field of industry.
The tools a professional is required to use everyday is just one area where accidents can occur, and gardener’s insurance helps to protect businesses of any size.
Not only can this help in terms of business interruption if an injury puts someone out of work, but an employer can be covered for any personal injury claims caused by faulty machinery.
The use of tools are only one pressing matter, however. Ultimately, working with your insurance broker on a risk management strategy is the best way to reduce the chance of these incidents happening altogether.
If you run a gardening business of any size and are not yet covered, it is time to turn over a new leaf.
Some landlords will decide to open their houses for use as student accommodation. Unfortunately, many believe they will be covered under their standard landlord insurance policy, but this is simply not the case.
There are added risks from housing students, including a higher percentage of damage to property and household items. After all, many of your tenants will have recently left home for the first time, meaning they may not yet know how to operate a washing machine without flooding the kitchen.
Personal injury is also a risk in student residences, and a landlord that is not covered can find themselves with a large bill to cover if accidents occur.
To protect your property, your tenants and yourself as a landlord, a specific student accommodation insurance product is available.
Again, these business owners will need to discuss exactly what is needed with their local insurance broker to find the right level of cover.
Painters and decorators
Similar to their walls, painters’ and decorators’ insurance is designed to make sure people operating in this industry are completely covered.
While the immediate threats to a business of this type may seem to be in the realm of personal injuries and accidents, there are no such restrictions to limit the responsibilities of a painter or decorator.
For example, you may find yourself being asked by your clients for information or advice. Without professional indemnity cover, this can become a problem if that customer is to come to financial or physical harm as a result.
Even a one-man painting business will need to be aware of what risks are lurking around the corner, and be primed to deal with any that arise.
Your local insurance broker can prepare you for this, to minimise your financial liabilities and guide you to an insurance policy that also meets your budget.
If you are a small business owner, you will need insurance. To find someone on your side, contact MGA insurance brokers today. We have 35 years’ experience and 25 offices throughout Australia, allowing us to provide a service that caters for your individual needs – no matter the size of your company.