Business Insurance

Insurance:

Insurance is a necessary part of operating a small business and protecting your business against unforeseen events. Insurance requirements will vary depending on your particular needs and for detailed advice and information on the type and cost of insurance.

Basically, insurance falls into three main categories;

1. Assets and Revenue
   Things the business owns and its revenue generating capabilities.
2. Liability
   Legal obligations arising from injury to others or damage to their property.
3. Personnel
   Protection against loss arising from personal accident or illness involving yourself or  your employees.

Some insurances that you will need to include in your DTL financial plan are;

Public Liability Insurance (PLI):

This covers you against claims by members of the public who may suffer injury or damage to property while on your premises, or while you are working at their premises. You require a minimum of $5 million Public Liability Insurance. If you have guests from overseas, a minimum of $10 million cover is recommended. This is to cover your guests in case of serious injury and to protect yourself from ruinous legal liability. It should also cover liability for food and liquor and other goods sold.

Building and Contents Insurance (inc. Property Damage Insurance and Money Insurance):

This insurance is required to protect your assets from any damage that may occur.

How to work out the cost:

Use the following information (taken from an example of a small accommodation operation) and apply it to your business.

For a insurance that will include a $20 million PLI and all Business and Contents Insurance you will pay a $2,200 annual insurance premium

For more information on Insurances for your business visit the following link;

http://www.niba.com.au/niba/html/Your_business.cfm

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