Why do I need business insurance?
http://www.millpoint.com.au/business
What you need to remember is that insurance is about getting you back to where you were before your loss. It isn’t about making a profit or bridging a gap in your finances. However, to make sure your policy will respond when and how you want it to, you must understand what you need to cover and what products fit your business.
As a general rule of thumb, a business needs to cover its assets and potential liabilities, so spend time considering the following points:
Assets can include anything in the business that has a monetary value –stock, machinery, computers – and things that on the face of it don’t have a monetary value but, if lost, would cause serious problems to your business insurance. This could include customer data and employee information, for example.
You then need to consider the things that people could sue you for, whether that’s an employee injuring them, your product or service causes damage to someone or something, or even your advice or actions causing another party to suffer a financial loss.
Finally, if something happened that prevented you from working from your normal place of business, who would pay your bills and keep your business going whilst you rebuilt and tried to win your customers back?
