As a small business, insurance may be the last thing on your mind. You may believe business insurance is only necessary for larger companies and is not a financial priority for you right now. In reality, insurance is equally as necessary for small businesses as one accident or mistake could cause your business funds to be drained and your new venture to end before it has even properly begun. Here we outline 5 reasons why insurance is important for small businesses…
1. Keep your business running
In the unfortunate case of a fire, flood or another natural disaster, insurance will ensure your business and goods are protected. Something as catastrophic as a fire or major theft can be detrimental for a business. Even if your building and contents are insured, without the right business insurance you won’t be compensated for the profits lost as you recover from the event, meaning you may be without income for the foreseeable future.
2. Legal & Contract Requirements
For small Australian businesses, some forms of insurance are a legal requirement. For example, if you hire employees, worker compensation insurance is necessary. Public liability insurance is also mandatory, to cover your business in the unfortunate circumstance of third party death or injury. Plus, some business contracts actually state that insurance is required, so without insurance, you are depriving your business of countless potential opportunities and putting your business at legal risk.
As a small business, building a positive reputation is essential. Without insurance, your business can appear as a risk to potential clients or other businesses you wish to collaborate with. Once you have the right insurance, you can highlight this fact on your website, business cards and social media accounts, to let everyone know you are a safe bet.
4. Protect and retain employees
Even if you only employ a few members of staff, their safety and happiness should be a business priority. Should they be sued or injured at work, you must ensure you have insurance that will take care of and protect them. As your business grows, you will most likely want to hire new staff, and in today’s workforce climate salary is not the only thing that attracts job seekers, as they will also consider perks such as health and disability insurance. Having small business insurance will, therefore, help you attract high-calibre employees.
5. Protects customers
Accidents, unfortunately, do happen. For example, you may deliver a faulty product to a customer or serve them out-of-date or improperly labelled food. Should such an incident occur and a legal situation arise as a result, then having the right insurance will not only ensure your business can continue to operate, it will also mean you have the funds to properly compensate and care for your customer.
For more information about small business insurance Australia’s businesses can count on, contact www.macey.com.au today. We offer a personalised service that ensures you get the right insurance for your business. If you have any queries, do not hesitate to contact one of our team members!