What is business insurance and how can it help telephone retailers?
Running a retail business exposes you to a host of insurance risks. There are staggering amounts of potential risks that have the potential to threaten the financial viability of your business. For example, a customer could fall over in your store and decide to sue you, a fire or storm could destroy your store and its contents or thieves could make off with your store's contents.
Along with many other retail operations, telephone retail store owners need to carefully consider their business insurance needs. Business insurance for telephone retail stores is specifically designed to protect your business from a wide range of potential risks. This offers the peace of mind and confidence you need to simply go about your day-to-day business, with the knowledge that you will be covered if things go wrong.
In short, business insurance cover is essential for all retailers, so read on to find out more about how it applies to you.
How much retail business insurance?
Every retail business faces risk but how much business insurance your retail operation actually needs will depend on a number of factors. There are several questions you will need to ask yourself to determine how much cover you need.
For starters, do you run a small operation or a large retail store? The more employees and customers you have, the greater your level of risk will generally be. The location of your store will also have an impact, as stand-alone stores will face different potential dangers than those located in large shopping centres.
The type of products you sell and whether or not you give expert advice to customers can also have an impact, as would your business’ ability to continue to operate if a key person or employee were to suffer an accident and be unable to work.
Finally, you also need to consider whether you would need cover if an unforeseen event, for example, a fire or storm, meant your business was unable to operate for a given period of time. Taking all these and more factors into account will help you determine the right level of cover for you.
- Fire and other damage. This type of insurance provides cover for your building and business contents for events like fire, storm, lightning, explosion, earthquake and impact. The cost of removing debris is also usually covered, but there is no cover for flood damage.
- Public and products liability. This provides cover against claims of negligence made against your business in relation to personal injury or property damage. For example, claims could relate to a product you sell to a customer or to someone injuring themselves in your store.
- Burglary. This type of cover protects you against the theft of stock, customers’ belongings, electronic equipment and other business contents held within your business premises.
- Money. This covers the theft of money from your premises.
- Glass. Glass coverage includes protection for things like breakages to shopfront windows, shelves and display cabinets.
Other cover options that can be added to your insurance package include:
Other cover options that can be added to your Insurance package
- Business interruption. If an unforeseen event, for example, an earthquake, results in your business being unable to operate, this replaces the profit your business loses as a result.
- General property. This covers the cost of repairing or replacing any business equipment that is accidentally damaged.
- Personal accident and illness. This offers cover against the loss of income you or another employee suffers as a result of an accident or illness.
- Machinery. Choose this option if you require cover for the breakdown of business machinery like cash registers, cool rooms or air conditioners.
- Fraud and dishonesty. If an employee commits a fraudulent or dishonest act or omission to achieve personal financial gain, you’ll be covered for any resulting loss of money you end up suffering.
- Electronic equipment. This option is designed for those who have a significant amount of electronic equipment in their business. It offers cover for the breakdown of essential office equipment such as computers, printers and telephones.
- Motor vehicles. Select this option if you require cover for any business vehicles or mobile plant that you use to operate your business.
- Tax audit. If your business is the subject of an audit or investigation by the Australian Taxation Office, this option will provide coverage for any professional fees you incur.
How to compare retail business insurance policies
For telephone retail stores looking for business insurance, there are a number of factors that need to be taken into consideration when comparing policies. As with any business decision, cost is a crucial factor to take into account. While a cheaper policy is always going to sound much more appealing than forking out for expensive premiums, make sure you know exactly what you’re paying for. The last thing you want is to end up with an inadequate level of cover in place, so remember to look beyond the cost to the features of each policy.
Excesses differ between policies, so make sure you’re aware of how much you’ll have to pay in the event of making a claim. Exclusions can also differ from one policy to the next, which is why reading the product disclosure statement is always essential. You don’t want to get a nasty surprise in the future and find out something you assumed was covered actually isn’t, so do your research and read all the fine print.
Some retail business insurance policies are also specifically targeted at certain industries, so look for one that will meet the needs of your business. Risks can also vary from one retailer to the next, so you need to take into account the various dangers facing your business and the consequences you would face if those dangers were to become real events.
It’s also a great idea to seek expert advice from an insurance consultant to ensure you end up with the right type and level of cover in place.
Frequently Asked Questions about retail business insurance
Q. Which companies offer business insurance?
- A. There is a variety of reputable insurers that offer insurance coverage for business in Australia. These include QBE, GIO, CGU, NRMA, Allianz and AAMI
Q. How much cover do I need?
- A. Determining the exact level of cover your business requires will take some time. Consider the risks your business faces, the likelihood of them occurring and the consequences you would face if they did occur—this will help give you an idea of just how much protection you need.
Q. I need help choosing the right policy. What should I do?
- A. Finding a suitable retail business insurance policy can be a difficult task. If you’re feeling overwhelmed by the choices available, an insurance broker can help you make sense of the choices in front of you. Brokers have years of experience and can offer tailored advice suited to the needs of your business.
Q. How do I make a claim?
- A. Your insurance provider will most likely tell you how to go about claiming on your business insurance policy. You’ll probably be asked to present evidence to support your claim.
Q. How long does it take to process a claim?
- A. The time taken for the claims process varies depending on the complexity, severity and type of your claim. However, your insurance provider will give you an estimated time-frame and keep you abreast of your claim's progression.
Business insurance is a vital consideration for a range of businesses, especially for those who own telephone retail stores. However, in order to ensure you end up with the right level of cover in place for your business, compare your available retail business insurance options at finder.com.au.