Insurance Tips for New and Existing Business Owners

Running a business or starting a new business is one of the biggest and most challenging things you might ever do in your life. It can also be very rewarding as well as being the gateway to financial success for your own future and that of your family.

But why do so many businesses fail? Quite often, a small business will fail due to a lack of forward planning. Obtaining the right advice from industry professionals such as accountants, lawyers and insurance advisers, in addition to well thought out planning are key for starting a new business.  Get it right at the beginning and chances are your business will be a success.

In this regard, insurance is one of the most important considerations. Ensuring you have the right covers and understanding the risks and exposures relating to your business is vital. The protection, not just for your business, but for the personal assets of directors and officers, is another important feature as these may be exposed if their actions are brought into question.

In the very early stages of developing a business plan, you must ensure you have adequate insurance that will continue to meet the needs of your business, and be subject to review as your business evolves. It is not a case of ‘set and forget’ as your policies may need to change as your business grows.

Having the right insurance in place to manage your business risks is essential. This means, obtaining the correct advice up front and reviewing your insurance regularly, as your business grows and changes to ensure that you will be covered if you ever need it.

Each business is unique and therefore requires customised insurance solutions. We have compiled this series of articles to help business owners understand the insurance cover options they may need to consider for their business.

This information provided is a guide only. Always consult with an adviser for more tailored advice for your business.

In our article series for New and Existing Business Owners, we will be covering some tips on the following insurance covers over the coming weeks:

• Business Property & Liability Insurance
• Professional Indemnity Insurance
• Management Liability
• Workers Compensation Insurance

HERE ARE SOME USEFOOL TOOLS & RESOURCE

Starting a New Business

There are some great resources and tools for starting a new business available on www.business.gov.au website including:

Checklists for starting and growing a business

1.    Guides

2.    Tools

3.    Contracts.
Insurance requirements for acquisition and service contracts

• Starting a business checklist
• Growing your business checklist
• Checklist companion
• Business Plan Template and Guide
• Emergency Management Template and Guide
• Social Media Plan Template and Guide
• Succession Plan template and Guide

Marketing Plan Template and Guide

• Australian Intellectual Property Toolkit for Collaboration

The IP Toolkit has three parts:

• Insurance requirements for acquisition and service contracts

This paper has been prepared to assist readers to draft and negotiate insurance clauses in acquisition and service contracts