You need to make sure that your areas of risk are covered in your small business and one of the main strategies in your risk management plan is insurance. Insurance is designed to offer financial protection when things go wrong and is essential for your business. One of the most important forms of insurance that your business should consider is business liability insurance. Let’s take a closer look at how this policy protects your small business.
What is business liability insurance?
Business liability insurance will protect your business from the financial implications of third party claims which have resulted from damage to property or injury to a person following your actions at work. It also covers your legal bills if you’re required to hire a lawyer during the claims process.
Why should you have business liability insurance in place?
Contractual requirement – in many cases, you’ll be required to have business liability insurance in place as a condition of a contract and you won’t be able to enter many worksites without it.
Peace of mind – the purpose of business liability insurance is to provide you with financial peace of mind that you’re protected if a third party makes a liability claim against you. The costs associated with a liability claim can be significant and have the potential to be financially disastrous if you don’t have cover in place. Even if a claim is unfounded, the legal bills associated with defending a claim can also add up.
Protects third parties – business liability insurance doesn’t just protect you – it also protects any third party who may make a claim against you. Without liability insurance in place, many small businesses simply wouldn’t have the money to pay for an expensive claim.
Industry expectation – for most businesses, liability insurance isn’t a compulsory requirement. However, there is a general expectation that tradies will have this cover in place. When you consider the financial impact that a claim could have, it’s easy to see why this is a basic insurance requirement for your business.
How much business liability insurance do I need?
The amount of business liability insurance you require depends on the size of your business, whether you have employees, the location of your work and the type of work you undertake. Generally, you’re able to be insured in amounts of $5 million, $10 million and $20 million.
At All Trades Cover, we specialise in providing insurance for tradies and can find you the best insurance package for your specific needs at a competitive price. We understand your business and can help you ensure that all areas of risk are appropriately covered. If you have any questions regarding your insurance needs, don’t hesitate to contact use at any time.
To arrange business liability insurance, contact All Trades Cover today on 1300 826 850.