15-Point Insurance Checklist For Starting A Small Business

1 February 2024
|In Insurance
|By Mojo Dojo

Starting a small business in Australia is an exciting journey but comes with its fair share of risks, uncertainties and challenges. With the right insurance policies in place, however, you not only mitigate the financial burden of unexpected events but also gain the peace of mind to focus on growing your business without the constant worry of potential setbacks.

To help you navigate your way through the world of insurance, we’ve compiled a 15-point checklist to help you secure your business’s future.

  • Determine Your Business Structure

Before diving into insurance specifics, you need to identify your business structure. The type of entity you operate (e.g., sole proprietorship, partnership, company) may impact your insurance requirements.

  • Assess Your Business Risks

It’s crucial to identify the specific risks related to your industry and business operations. These could involve property damage, liability claims, and other relevant factors. Knowing these risks, you can customise your insurance coverage, ensuring your protection aligns with your business’s unique needs.

  • Register Your Business

Ensure your business is officially registered with the appropriate authorities in your state or territory. Many insurers require this as a prerequisite for coverage.

  • Review Your Business Insurance Options

As a small business owner, you must have a solid grasp of the different business insurance options available on the market. That’s because each type of insurance serves a distinct purpose, protecting various aspects of your company. Here are several options to consider, but there are many more that are industry-specific.

  • Public Liability Insurance: Protects against claims from third parties for injury or property damage caused by your business operations.
  • Professional Indemnity Insurance: Essential for service-based businesses, it covers claims arising from professional advice or services provided.
  • Workers’ Compensation Insurance: Mandatory in Australia, it provides coverage for workplace injuries and illnesses for your employees.
  • Business Property Insurance: Protects your physical assets, such as equipment, inventory, and premises, from damage or theft.
  • Commercial Vehicle Insurance: If your business uses vehicles, this policy protects your vehicles and drivers in case of accidents.
  • Cyber Insurance: Safeguard your digital assets and data from cyber threats and breaches.

  • Create a Budget

While specific insurance policies are crucial for risk management, affordability is key. So, develop a realistic budget that aligns with your overall operational expenses, even if it’s preliminary.

  • Compare Insurance Providers

Conduct a thorough market survey and assess multiple insurance providers to identify the ideal match for your business. Take into account essential factors, including the scope of coverage, premium rates, and the insurer’s reputation in your industry.

  • Review Policy Exclusions

Carefully review the policy exclusions to understand what is not covered. You will need to work with your insurer to address any gaps in coverage; otherwise, your business may remain vulnerable to unexpected risks and liabilities that could lead to financial strain and setbacks.

  • Understand Policy Limits

Policy limits signify the maximum payout an insurer provides for a claim. You must ensure these limits correspond to your business’s potential liabilities, guaranteeing adequate coverage in the event of an unforeseen incident.

  • Seek Professional Advice

Our industry-specific brokers guide you through the maze of insurance options, developing a package that aligns perfectly with your business needs.  We’ll provide you with the best protection for your business, leaving you to focus on growing your business.

  • Review and Update

It’s important to regularly review and update your insurance coverage as your business evolves. Expanding operations may bring new risks, meaning that your current policies may no longer cover all your risks and need to be revised.

  • Bundle Policies

Contact your broker and explore the possibility of bundling multiple insurance policies with the same provider, which can often lead to cost savings.

  • Secure Finances

Ensure your business has the financial resources to cover insurance premiums and any deductibles in case of a claim.

  • Read and Understand Your Policy

Thoroughly read and understand your insurance policy, noting coverage terms, conditions, and any obligations you must fulfil.

  • Maintain Safety Protocols

Your broker can help you identify safety measures to reduce the likelihood of accidents or claims with the benefit of lowering your premiums.

  • Seek Legal Advice

If you have questions or concerns about your insurance requirements, seek legal advice to ensure compliance.

Securing Your Business’s Future With A Strong Insurance Foundation

Congratulations on starting your new business! Now it’s time to protect your investment from potential risks – because insurance isn’t a luxury; it’s a safety net for your business. With our checklist and a little help from our experienced brokers, you can quickly safeguard your new venture and focus on its growth and success.