Compare Business Insurance and Professional Indemnity in Perth, Australia
Perth is known as the hub of Australia’s resource sector but did you know that the biggest industry in Perth is actually the professional, scientific and technical field? Mining follows closely behind along with the accommodation and food services industry while construction is one of the fastest growing industries in the region.
In each of these industries, business insurance is of vital importance. The particular risks facing a mining company compared to a company specializing in scientific research may differ significantly, but the consequences if things go wrong can be catastrophic in both instances – both financially and personally.
Business insurance protects small, medium or large businesses from unexpected financial pressure resulting from an accident, disaster or court case. There are three main types of business insurance: asset and revenue protection, liability insurance and personnel insurance.
Why Is Business Insurance so Important to Perth Business Owners?
When you’re investing time and money into a business venture there is much to consider. Business insurance shouldn’t just be a consideration though, it is a necessity for all businesses, large or small.
A business cannot afford to be uninsured. No matter how careful you are, you can’t be everywhere at once and there are external factors affecting your business, which you have no control over.
- Scenario 1: A fire breaks out in your office building destroying important files and business equipment. You will have to replace all equipment lost and lose important business hours recouping information.
- Scenario 2: One of your employees is injured while trying to fix some machinery. You could be liable for their rehabilitation and income lost.
- Scenario 3: The delivery truck for your food services business is in an accident causing the truck to be damaged and stock inside destroyed. You will need to replace the vehicle and stock promptly in order to not affect business relations and you may be responsible for damages to other people’s property as well.
Ask yourself, if your business was affected by one of the scenarios above, would your business have the funds available to meet your financial responsibilities?
If you answered no, you are not alone and even if you do have those kind of funds available, it pays to have a support team to take care of the finer details and deal with it quickly and efficiently while you get on with building your business. Not every business needs every type of insurance so it is important to do your homework. There are a number of very competitive business insurance packages available through a variety of insurers to suit your individual company and industry’s needs.
- Tradespeople: If you are a residential builder, bricklayer, electrician, plumber, shopfitter or other type of tradie, you need business insurance that understands the risks you face and realises that your office moves with you from site to site. Get cover for theft of tools and equipment, equipment breakdown, business interruption as well as personal injury and illness.
- Public Liability Insurance: No matter the size of your business, protect yourself from third party claims for compensation as the result of personal injury or property damage caused by something in connection to your business. You can usually choose the limit of your cover so you are protected for an amount you can service and suits your needs.
- Professionals Insurance: Ensure your laptops, cameras and electronic equipment are protected in the event of a fire, burglary or other specified occurrence, even if they’re not in the office.
- Professional Indemnity: Professional Indemnity Insurance (PI) covers individuals and companies who provide specialist advice or services. If it is alleged that you violated or failed to perform part of your agreement, misrepresented or gave inaccurate advice or some part of your advice or service caused a financial loss for the client, they may take legal action and try to sue your business. Professional Indemnity Insurance helps cover hefty legal fees and any damages awarded.
- Commercial Vehicle: Whether your business has one car or an entire fleet of vehicles, commercial vehicle insurance covers them against theft and accidents. Many commercial vehicle insurers also cover trucks and light machinery if it is applicable.
Why is Professional Indemnity so important to Miners in Perth
Mining is one of the leading industries in Perth and in Western Australia in general. While some professionals, like engineers, are required to have professional indemnity insurance, it can be beneficial for other mining professionals to opt in and buy a policy regardless.
Many mining professionals work as independent contractors and, while there are many perks and flexibility, it means they are not covered by an employer’s insurance and need to take responsibility for their own risk. When you are consistently working in a dangerous environment or making decisions that affect the safety of yourself and others, it is vital that you protect yourself from any legal claims that are made against you including defamation, breach of the Fair Trading Act and infringement of duty. After all, the advice and services you offer are your source of income, so be proactive and protect yourself with professional indemnity insurance.
The importance of Public Liability insurance
Public liability claims cost Australian businesses millions of dollars every year. Between legal fees and compensation costs, businesses have to pay out when they are sued for events like a customer injuring himself or herself in store, or an honest mistake on the job that results in loss of income or property damage for the client.
If your business deals with the public at all, public liability insurance could protect you from a costly legal process – regardless of whether you are at fault. If any damage or personal injury results from an association with your business, customers and members of the public have the right to sue you. With public liability insurance you will be able to meet your legal liability to pay damages as well as cover your own legal costs.
For a relatively small financial outlay, you can run your business with peace of mind knowing that you can responsibly serve your customers while keeping your business assets safe.
Q: What impacts my business insurance premium?
- A. Business insurance differs depending on risk. Theft is has a minor effect but the risk of natural hazard has a more significant impact on your premium, especially if you conduct business in an area that is considered high risk.
Q: What insurance do I need?
- A. Depending on your industry and situation, some insurance is compulsory. Workers compensation insurance is compulsory if you employ people. If you run a business vehicle, third party personal injury insurance is needed. Some companies must take out public liability insurance also.
Q: How do I work out which insurance gives me the right cover for my business?
- A. While there are recommended insurance policies for different industries, your business is unique; that is what sets it apart from its competitors. First of all do your homework, be realistic and cautious. Speaking to a business adviser gives you access to some objective advice. Business.gov.au is a useful resource that provides government-funded business advisers for each particular state and industry and could be helpful in this instance (http://www.business.gov.au/AdvisorFinder/AdvisorFinder.aspx).
Q: What do I look for in a business insurance provider?
- A. When you are looking into business insurance you have a couple of options. You could speak directly to an insurance company who has a variety of different products and policies available under the one roof. Alternatively you could work with a broker who might specialise in your industry and negotiate with different insurers to get you the most suitable policies. Either way, you are looking for someone who takes the time to get to know your business and actually visits your premises to give you the most accurate quote for your individual needs. It is also helpful to develop a relationship so you have a direct person to refer to should you need to make a claim instead of waiting in a phone queue.