What are the main types of insurance I will need?
Who can I speak to about getting information about the different types of insurance that I will need?
Do I need to pay workers compensation insurance?
Do I need personal accident or sickness insurance?
Do I need to pay superannuation?
How much insurance do I need?
There are many types of general insurance policies commonly used by small business. Few businesses will need all the policy types available and some will need more specialised policies. You should telephone at least three agents and get them to see you at your place of business or your home and have them make suggestions on the type of insurance you will need. Some of the main types of insurance you may need are Fire Insurance, Business Interruption or Loss of Profits Insurance, Burglary, Workers Compensation, Personal Accident or Sickness, Public liability, Superannuation, Electronic Equipment Insurance for Computers, Machinery Breakdown, Professional Indemnity for Professional Service Business and Product Liability Insurance.
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Depending on the type of business you are involved in, there are various types of insurance cover available. The easiest way to ensure that you are covered for what you need to be covered for is to appoint an insurance agent or broker to take care of your insurance needs. It may also be beneficial to speak to your industry association as they may be able to recommend insurers that specialise in your field.
Workers compensation is compulsory for all employers in Australia, even if they only employ one person. The amount of workers compensation payable is calculated on the basis of salary and wages paid, but the rates vary depending on what industry you are in and your claim history.
While not compulsory, it is important as a small business owner to insure yourself against accident or sickness, especially if you have financial exposure such as a business loan or mortgage. An income protection policy will provide you with an income should you fall ill or if you are disabled.
Under the Superannuation Guarantee you need to provide a minimum level of superannuation for your employees or pay a tax called the Superannuation Guarantee Charge. The minimum contribution is 9% for all employees, with some exceptions including those who are: