We are not insurance specialists, and merely aim to provide a general introduction here. For more details visit the Australian government’s business website, or find a broker belonging to the National Insurance Brokers Association. Not all types of insurance are discretionary. You can decide whether to insure your business interests, but you must insure the people with whom you come in contact.
Compulsory Insurance Cover
- Workers Compensation
You must have workers compensation insurance for every person you employ. This cover includes weekly and lump sum payments, medical, hospital and rehabilitation expenses, and return to work costs as approved by government.
- Third Party Personal Insurance
Check and make sure this cover is part of your vehicle registration fee. If not, pick up the phone to your insurance broker and get it, preferably before you drive again. Vehicle accident claims can involve horrendous sums of money
- Public Liability Cover
Public liability cover should be number one on your list of insurance concerns. Common sense dictates we protect ourselves against third party death or injury, and / or third party economic loss arising out of your or your employees’ negligence; if you don’t you could end up losing more than your business.
Optional Insurance Cover
Although the following is discretionary because it protects you as business owner, it does form part of being a socially responsible person, and you may have dependents to care for too. Discuss what follows with your broker to find suitable options for you and your business. Consolidate what you decide into a single umbrella policy because you will get the same benefits for less.
- Insurance Cover for Yourself
As business owners, we are not eligible for workers compensation. If you fall ill, have a serious accident (or pass away) your holiday rental income could contract and your personal expenses will rocket. Speak to your broker about income protection / disability insurance, trauma protection and life cover. It is the responsible thing to do.
- Insurance Cover for Your Business Assets
Your holiday rental could become your sole source of income, and a lucrative one at that! Australia’s weather can be unpredictable and we do have bushfires, floods and cyclones (often in the same season on different ends of the country). Discuss building & contents, burglary, and business interruption insurance with your broker.
More Food for Thought
Woody Allen may have been correct when he said, “There are worse things in life than death. Have you ever spent an evening with an insurance salesperson?” Notwithstanding the rigmarole around insurance, reconsider your insurance cover with your broker. If you do not have a broker yet, visit the National Insurance Brokers Association or talk to other local business owners and ask who they recommend in your area.