If you are starting a business, you might be wondering what kinds of business insurance you need to legally trade in Australia. Here are four business insurance policies that are mandatory or highly advised in Australia.
1. Workers' Compensation Insurance
Sole traders are the only types of business that can't get workers' comp — for anyone else, it is a must. Australian legislation makes workers comp compulsory for employees under the Workers Compensation Act 1951.
Workers' comp insurance is designed to protect you as the employer. If your employees are sick or injured and cannot work, then workers' comp insurance claims can pay their wages during the time that they are unable to work. It can also go towards any lump sum payments that the employees are entitled to. If an employee is injured at work, workers' comp insurance covers medical expenses and rehabilitation. If you have employees of any time, whether on a full-time or part-time basis, this kind of business insurance is mandatory.
2. Public Liability Insurance
If you deal with the public, then you need to be protected against public liability claims. Although public liability is not strictly compulsory in Australia, there are some industries where is it compulsory. For example, if you are a plumber in Victoria it is legally required to have public liability insurance. For other businesses, such as sole traders and larger companies this is still a very heavily advised business insurance, as it protects you in case of large claims against the company and can save you paying damages.
3. Professional Indemnity Insurance
Professional indemnity is a type of business insurance that is mandatory in some cases in order for a company to legally operate. For example, anyone practising law must carry professional indemnity insurance. It is also advisable for other businesses, as professional indemnity insurance covers legal fees in claims against your business such as defamation, breach of contract and negligence.
4. Third Party Personal Injury Insurance
This type of business insurance is compulsory if you use a motor vehicle as part of your business. If your work vehicle is involved in an accident and injuries someone, then third party personal injury insurance can cover the cost of compensation.
If you are a business owner, then you have certain legal rights and responsibilities towards your employees, clients and customers. The above types of business insurance help to make sure your business is legally insured by Australian law. Ask for a quote today.
Share15 December 2021
When a customer launched legal action against my business, I was really worried that I wouldn't be able to afford any compensation I needed to pay. Thankfully, my brother had helped me to find some great commercial insurance. When the judge awarded damages and ordered me to pay a large sum of money, my insurance policy covered this. I was so happy. If I hadn't had commercial insurance, my entire business might have failed. I hope that the articles I have posted on this blog will help you to understand the many benefits of taking out a commercial insurance policy.