4 things to consider before buying business insurance

Last updated on June 6th, 2023
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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All the right moves in all the right places may be what you have planned for your business. However, are you and your business protected for those unforeseen circumstances that could possibly leave your finances a bit drain? Here are the reasons why you need business insurance to keep your business afloat.

Know the industry risks

You may have assessed your business inside and out to see what could possibly go wrong, but have you checked the risks that come within the industry you are planning to run it in? Small businesses are faced with the struggle of keeping their doors open for the 1 year to the next 5 years to prove successful in its ventures. According to the Australian Bureau of Statistics, there were 328,205 new businesses that entered the market in 2015-16, but 261,450 businesses had to close their doors. Knowing the industry risk can help you better prepare your business and know what type of business insurance will be suitable for it.

Getting adequate cover for your business

Taking the first step to getting your business insured is the first step. However, the challenging aspect of this is knowing if you are getting adequate cover. You may also be faced with the question of how much business insurance will cost you, as you will have to factor this into your business budget. To make the process easier, you can consider speaking to an insurer or a financial advisor who will be able to give you something that will be tailored to your needs. Always keep in mind that the cheapest policy may not give you the best value for money, which is why it is important to compare your policy. It can prevent you from making a financially expensive mistake that will leave your business exposed.

Keep an eye out for fees and charges

When it comes to keeping your business afloat every dollar counts. Therefore, checking your policy for the fees and charges with a fine-tooth comb can help you avoid expenses that can be hard to keep up with. Policies do differ from lender to lender, which also means that the fees will also differ. However, some of the most common fees to look out for is the cost of premiums, deductible fees, and exclusions. A common mistake that some businesses make is to assume that they will be covered for certain things, but without checking the policies inclusions and exclusions you could end being disappointed when it is time to make a claim

Work with someone who has experience

Choosing any policy or the first policy without doing your homework is a regret you don’t want to have. To get the real deal means finding an insurer or broker who is the real deal. This means checking your insurers rating and reviews to see if it’s good. Finding an insurer who has a reliable reputation and makes prompt payouts can be a worthwhile investment when you need it the most. The bottom line is to compare your options and carefully read through the fine print to avoid major hiccups.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

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