Setting up your new business is an extremely exciting process. But the process of turning your ideas and dreams into reality doesn’t always come easy. There are many unforeseen aspects to consider as well.
Creating a start-up isn’t just about developing products and launching online marketing campaigns. Services like business interruption insurance play a crucial part in risk prevention in your new start-up company.
Insurance – Do You Really Need it in 2021?
Insurance products might not be on your list of top 10 items to put in place when you’re setting up your start-up company. To many people, insurance is something you put in place at the last minute and usually at the cheapest possible option.
However, when setting up your business, there are several crucial insurances polices that you should put in place to protect your company, employees, products and customers. This has never been more crucial than in the ever-changing 2021!
Read on to see the types of insurances out there you might not have realised you needed!
1. Business Interruption
In the last two years, the term “Business Interruption” has gained a lot of momentum. This is a large result of global lockdowns and a series of natural disasters happening around the world. It goes without saying that any business should have a business interruption policy in place.
Some of the instances covered by business interruption insurance include the following:
- Events caused by fire
- Natural disasters like earthquakes, floods and tornados
- Damage to property that might render your business unable to trade
2. Amusements and Leisure Insurance
If your start-up has anything to do with the amusement and leisure industry, you should look into this type of insurance. The Amusement and Leisure Insurance provides liability for all types of show devices, amusement rides and high-risk entertainment devices.
There are a several items covered by this type of insurance, some of which include the following:
- Children and adult inflatables
- Photo booths
- Ferris wheels
- Mobile climbing wall
3. Building Construction & Civil Contracts
One of the industries that require extensive insurance is the construction sector. The use of heavy machinery is always a risk for accidents or damage. Contract workers can also benefit from these types of insurance.
Instances covered by this type of insurance include the following:
- Third-party liability, personal injury and damage to property
- Construction of commercial, industrial, and residential structures
- Loss of profits as a result of project delays
4. Hospitality – Hotels, Bars, Nightclubs & Restaurants Insurance
Hospitality is a specialised industry with unique needs. For this reason, entering into this industry requires your start-up to have the right type of insurance that caters to the specific needs of your business.
This type of insurance covers the following sub-sectors within the hospitality industry:
- Wine bar insurance
- Café insurance/restaurant insurance
- Pub insurance/hotel insurance
- Nightclub insurance
5. Cyber Insurance
Whether you’re starting a construction company or a bed and breakfast, you’ll undoubtedly be dealing with customer/client data in some form or another. This type of data can include personal details as well as financial information.
Since data breaches and criminal hacks are a serious risk to any business, it’s important to take the necessary measures to protect your customer and company data. Some instances covered by Cyber insurance include the following:
- Corporate data liability
- Personal data liability
- Data security
6. Corporate Travel Policy
Many business owners might have to do extensive travelling to get their start-ups up and running. This might be the case in the early networking days. It’s essential for business owners to have some form of corporate insurance in place to make provision for unexpected travel events that might occur.
Comprehensive corporate travel insurance policies should provide cover for the types of examples listed below:
- Political and natural disaster evacuation
- Access to medical, travel and crisis management specialists
- Tailored personal injury cover
- Cover for costs associated with identity theft and lost wages
Compulsory Insurances in Australia
When you’re reviewing the types of insurances needed for your business, it’s important to be aware of the compulsory types. Generally, Australian legislation dictates that the following three insurance types are compulsory for all businesses:
- Workers compensation insurance – Any business with employees is required to have this type of insurance in the case of illness or accidents.
- Public liability insurance – This type of insurance is crucial for self-employed businesses as well as contractors such as plumbers and electricians. For the most part, it covers third-party injury or death.
- Third-party personal injury insurance – Any company that owns vehicles must have this type of insurance to protect against personal injury claims related to and as a result of the use of these vehicles.
Insurance shouldn’t be something that makes you cringe or push to the back burner. The best course of action is to discuss your insurance options with a certified business lawyer to identify the best options.
The right type of insurances, specifically suited to your business needs will go a long way to protecting your organisation any liabilities.