Becoming a business owner and building a new company from the ground up is an endeavor that requires savvy, hard work, and confidence in your own decisions. For example, you may take some time to know your target audience and how to reach them through social media and blog posts. Or, it can take a few months to finesse a loyalty program and offer customers the discounts they’re genuinely interested in. There is no harm in making missteps along the way––and by all accounts, most of these are healthy in your growth as an entrepreneur as it can be the best way to learn how to handle mistakes and avoid repeating them.
However, there are some decisions you can’t afford to get wrong, especially if you are a new business owner. Failing to ensure your business or not purchasing certain types of insurance is the fastest way to be landed with a lawsuit and fines. In some countries, such as Australia, you must have mandatory insurance types for your business to succeed. The first step to ensuring that your new company fully complies with the land laws is knowing what insurance policies you need.
This is because the other two follow specific requirements. Workers’ Compensation is only required if you have employees, so this insurance is redundant if you are a sole trader or use outsourcing and agency staff. Similarly, the other compulsory insurance, Third Party Personal Insurance, is only necessary if you own a motor vehicle––regardless of whether it is used for business purposes.
public liability insurance is only necessary for certain companies in Australia, it is likely to be most relevant to yours. This type of insurance protects from lawsuits a public member brings if they (or someone they represent) have been injured (or worse) on the grounds of–or the result of––your business. Public Liability insurance does not cover third parties who work for you, as workers’ compensation covers this, but instead covers active potential customers. Similarly, and like Workers’ Compensation insurance, it doesn’t cover bodily injury to yourself––for protection, you’d need a purchase a policy like life insurance or private insurance.
If you fall ill and suffer a loss of income, you’ll need to cover yourself privately with a personal insurance company to recoup and avoid a loss of earnings. One of the most vital ideas for boosting your brand’s sales is to move to online sales in addition to brick-and-mortar stores. In light of the Covid-19 pandemic, many companies have had to move most of their retail business to online stores only. If your business is solely conducted online, then public liability insurance would only be necessary if you manufacture or alter products before you sell them––again, to prevent customers from being injured due to your business and actions within.
