Small business insurance tips 2023

Step 1. Assess your risks

A business risk assessment involves mapping out the risks and potential hazards a business faces and their consequences. The Australian Government has provided information to assist your business during the risk-assessment process.

The first step is to identify anything that may cause harm and list the risks your business may encounter. From there, analyse the risks, determining who and what could be harmed and ranking them.

After you’ve done a risk assessment, put in place management strategies such as disaster-recovery plans, emergency management, health and safety procedures and invest in essential insurances.

Step 2. Put in place the right cover

Small businesses often overlook the importance of adequate insurance cover due to lack of funding and resources, yet they are most at risk due to the potential inability to survive any major negative event. So, work with your accountant, lawyer, and insurance broker when sourcing the right insurances for your business.

These professionals can also advise you about the best business structure to trade and invest through, to protect your assets, yourself, and your family.

Step 3. Be smart about self-insurance

Self-insurance relies on a business or individual properly understanding, planning, managing their risk levels, and maintaining adequate funding provisions to remedy unexpected loss. If an insured risk befalls a business, paying for it can also be a huge and even fatal blow to cash flow.

Don’t forget the business’s risks will change as it pursues new opportunities and enters new markets; other reasons why an annual insurance review is a must.

Important note:

This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs.

For more information or questions on Business insurance or your own policy, please contact Fitzpatrick & Co. Insurance Brokers on 03 8544 1600, email insure@fitzpatrick.com.au, or visit fitzpatrick.com.au

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