Owning and growing a business can be incredibly satisfying, however, with increased rewards comes increased risk. Indeed, with increased business opportunities comes greater chances of revenue-disrupting interruption that can turn into a major cashflow crisis.
As a business expands, itâ€™s most likely going to need a larger premises, more equipment and staff as well as have transactions in new locations. These new changes mean new risk and usually the insurance cover will no longer be adequate for a business on the rise.
What are the top 4 insurances for growing businesses?
1. Employment Practicesâ€™ Liability insurance
Mistakes can happen even in those companies that are run well. Employers need to be mindful of the kinds of liabilities they might be exposed to in their responsibility for the safety and well-being of their employees.
While all business owners are legally obligated to take out workers compensation insurance for their employees, Employment Practices Liability Insurance is becoming increasingly popular. Employment Practicesâ€™ Liability insurance provides organisations with cover for actions taken by employees against their employers, whether it be for alleged discrimination, unfair dismissal and sexual or workplace harassment.
Australia is becoming increasingly litigious, with claims for unfair dismissal, sexual harassment and racial discrimination more common than ever.
Find out more about Employment Practicesâ€™ Liability insurance here.
2. Directorsâ€™ and Officersâ€™ insurance
In most growing businesses, there are usually Company Directors, Executive Officers, Senior Managers and a Company Secretary who take on important responsibilities with their roles. While these business members generally make decisions in the best interest of the company they run, even the most competent people can make mistakes.
Should mistakes happen, Company Directors can have claims brought against them and be held personally accountable for these claims. Directorsâ€™ and Officersâ€™ insurance gives business owners cover for key staff and board members so that they can be reimbursed for their legal costs if competitors, creditors, employees, liquidators, regulators or shareholders take legal action against them.
Find out more about Directorsâ€™ and Officersâ€™ insurance here.
3. Business interruption insurance
As your business grows, the greater your fixed costs will be and the more expensive it will be if an unfortunate event sets you temporarily out of business. Any business interruption will most likely impact your revenue while at the same time youâ€™ll probably continue to face the usual wage, rent and other business costs.
Business interruption insurance can cover you for loss of gross profit or gross rentals following an interruption to your business through fire or burglary and a range of other events.
Find out more about our business insurance options here.
4. Cyber insurance
Cybercrime is becoming one of the leading business risks globally. The illegal release of personal information like customer or employee records, credit card details or patient information can not only affect a business financially, but it can also harm your intellectual property, client trust and reputation.
In this digital age, a cyber-attack can make it difficult or impossible for a business to keep operating. In addition, if your business systems are compromised and your customersâ€™ personal data is taken the damage could extend to being investigated by the government regulator and/or being sued by your customers.
Find out more about Cyber insurance here.
For more information on wide range of cover options or to arrange Insurance for your business, please contact us and speak with one of our advisers. Alternatively, you can click here to find a Resilium Adviser in your local area.
The information provided in this article is of a general nature only and has been prepared without considering your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact Resilium directly.
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Source: Resilium Insights & News