- 21st October, 2024
- By Denise Choong
What insurance do you need when growing your business?
More than half (53.3%) of all Australian small businesses expect to grow in 2024, according to research released by accounting body CPA Australia. This is great news for the many dynamic entrepreneurs running these exciting ventures. However, choosing the right business insurance is critical to growth.
As your business grows and evolves, so can your insurance needs. Expanding your business, whether by increasing the scope of your operations, hiring more employees or opening a new location, may require careful consideration of your insurance coverage.
Ensuring you have the right insurance policies in place is crucial to help protect your growing investment and mitigate potential risks. But how does one choose the right business insurance with so many policies available? In this article, we’ll explore how you can find the best small business insurance in Australia that fits your needs.
1. Review current policies
The first step in ensuring adequate coverage when your business is growing is to review your existing insurance policies.
The idea is to look into your current general liability, property and business interruption insurance policies to determine if they still meet your business's needs. Expansion can often increase exposure to risks, so your existing coverage limits may no longer be sufficient.
2. Identify new risks
Growing your enterprise could introduce new risks your current policies may not cover. For example, opening a new location may expose you to different environmental hazards, customer demographics or regulatory requirements.
Identifying these new risks would help you to work out the extra coverage you need to protect your business.
3. Update your insurance
- General liability insurance can help shield you against the cost of third-party claims of bodily injury or property damage, helping to protect your business financially from potential lawsuits.
- With growth often comes acquiring new assets, making property insurance vital to help safeguard your buildings, equipment and inventory from perils like fire, theft, and natural disasters.
- Don’t forget business interruption insurance, which can be a financial lifeline during any unforeseen events that may halt your operations.
- As your workforce grows, you will also need to ensure your workers' compensation insurance is still adequate. It provides essential benefits to employees injured on the job and shields your business from the cost of legal actions.
- In the digital age, cyber insurance is a must-have to guard your business against the cost of cyberattacks and data breaches that could compromise sensitive information and customer trust.
What’s important is to tailor your business insurance choice to your expanding business needs, so you can navigate your growth journey with confidence.
Tips for managing insurance during expansion
It’s easy to let your insurance requirements fall down your to-do list when you’re expanding. But this can increase your business risks at a time when you need to be working on the business rather than managing a claim.
As your business grows, even the best small business insurance in Australia will need to be regularly reviewed and updated. So, make it a priority to do a yearly insurance audit to assess your coverage needs and make adjustments to your policies as necessary.
An experienced insurance broker can give you valuable guidance as you navigate the complexities of expanding your business, helping you to identify coverage gaps, recommend appropriate policies and negotiate competitive rates.
Talk to your CIA broker today to ensure you have a comprehensive insurance strategy that aligns with your business goals.
Consolidated Insurance Agencies provides tailored insurance covers for over 6,000 clients. We offer trusted advice and claims advocacy to ensure that clients get peace of mind.
To learn how we can help your business, contact our team today.