All business activities have an element of risk. Whenever you sell a product or provide a service, there’s potential, albeit probably minimal, that something could go wrong and the customer comes back to you for some form of compensation. Or perhaps an essential piece of equipment fails. Maybe you fall ill and can’t work. When you look at it, there are many reasons you might want to find ways to mitigate the impact of those things happen.
Some types of business insurance are not optional. For example, any business that has employees is obligated to have workers’ compensation cover, and any who require their employees to operate a motor vehicle requires those workers to be covered by compulsory third party insurance.
Insurance doesn’t stop bad things from happening. But it helps minimise the pain caused y events that are often outside your control.
Some forms of insurance are mandatory for all Australian businesses. The government mandates (https://www.business.gov.au/risk-management/insurance/business-insurance) that all business need to have Workers’ compensation insurance if they have employees. Each state operates its own worker’s compensation scheme.
All business activities have an element of risk. Whenever you sell a product or provide a service, there’s potential, albeit probably minimal, that something could go wrong and the customer comes back to you for some form of compensation.
Most types of business insurance are optional and some are only recommended for certain types of businesses. However, while not required by law, a property and casualty insurance policy are highly recommended for all business owners. Further, your landlord may require you to carry property insurance.
Two forms of insurance are compulsory for most Australian businesses. Every state and territory operates its own Workers’ Compensation scheme, which protects employees in the event of an accident or sickness. If you’re in NSW go to NSW: www.workcover.nsw.gov.au for information.
Or perhaps an essential piece of equipment fails. Maybe you fall ill and can’t work. When you look at it, there are many reasons you might want to find ways to mitigate the impact of those things happen.
Risk experts categorise risks using two key metrics; likelihood and impact. Insurance doesn’t change the likelihood. But it can mitigate the impact and turn a potentially business-ending incident into a manageable bump in the road. Without the proper business insurance coverage, you would have to pay out of pocket, which could be costly. And if you don’t have enough money to cover the costs, it could put your business in a potentially ruinous situation
There’s also Public Liability insurance to cover you for third party death or injury and Third Party insurance if you own a car (this is usually part of your vehicle registration fee).
Once you cover off your legally obligated insurance, you can start looking at other coverage you might need. Capify was born out of the desire to offer small businesses an alternative and accessible lending options for things like insurance. Proudly we were the first to do so in Australia. With 10+ years of local experience providing small business loans working capital globally, Capify is Australia’s most experienced alternative lender to small business.
With a focus on customer service and simplicity; our vision is to support Australian businesses with tailored financial solutions and solve small business finance such as an unsecured business loan or merchant cash advance. With our philosophy, we work together to create the most flexible and accessible commercial business loans for our clients. This allows us to streamline our internal processes passing on time and cost savings to you and making sure that you have peace of mind with paid insurance and steady cash-flow.
Compulsory Insurance some forms of insurance are compulsory by law for Australian businesses, such as Workers’ compensation insurance – compulsory if you have employees. Public liability insurance – covers you for third party death or injury, compulsory for certain types of companies
Recently, a jewellery shop in Melbourne caught fire with much of the store destroyed. But that store wasn’t the only victim. The neighbouring cafe was also heavily damaged, resulting in the loss of stock and equipment. The two store owners ended up with very different outcomes because they had assessed the risks differently and took out separate insurance coverage. Many businesses (e.g. restaurants, shops, workshops) will need typical insurance products to protect against events like property damage, natural disasters, theft of belongings, etc.
This is crucial for businesses to run from homes, as a policy that covers your personal belongings does not necessarily cover business assets.
Both stores were closed for many months. The jeweller was able to call on his insurer to cover the loss of stock, shop-fittings, computer systems and other equipment essential for the operation of the business. But they also had insurance to cover the loss of income while the store was being restored.
The cafe owner had almost the same level of coverage but lacked the critical element of income protection. So, while they were able to rebuild the cafe, there was no income. As a result of that loss, they were unable to return to the business.
Small businesses are usually built from the ground up by their owners.
While a fire might seem like a low probability risk, the impact can be catastrophic. Other challenges, such as floods, cyclones or other events can be crippling to small business. Insurance can offer some mitigation against the impacts of such events.
Small businesses can include sole traders who provide consultancy services to other companies.
Having insurance, and making that clear to potential clients when pitching for work, adds to your credibility as a serious company. And Professional indemnity insurance protects you from legal action taken against you if someone suffers a loss after following your professional advice or as a result of your receiving your service.
Whether your business operates from offices, a factory or a room at home, you may be the victim of theft. Having appropriate insurance to ensure essential assets such as tools, computers or specialist equipment can be replaced in the envoy of theft is necessary. Just as the cafe owner lost their livelihood for many months, being without the means to repair or restore a vital tool can cripple your earning capacity.
One final piece of small insurance businesses might need to consider cyber-insurance. This emerging area is becoming more critical as criminals use tools such as ransomware to cripple your computers and lock up your data. If you are highly dependent on your PCs, then it might be worth thinking about mitigating the risk of having to pay for technical help should your business suffer a tech attack.
Small businesses might operate with lower revenues and different risks to large corporations. Still, the impacts of theft, disasters and data losses can be felt far more acutely by owners and operators. Insurance doesn’t stop bad things from happening. But choosing the right insurance coverage for your business means that the impact of an incident can be reduced.
Risk experts categorise risks using two key metrics; likelihood and impact. Insurance doesn’t change the possibility. But it can mitigate the effect and turn a potentially business-ending incident into a manageable bump in the road.
Capify is the first Australian unsecured small business lender and has been helping SMEs all over the country access responsible short-term finance from $5,000 to $300,000. Capify has contributed to the small business loan Australia economy by lending more than $650M so far in working capital financing.
According to the Australian Small Business and Family Enterprise Ombudsman, Small businesses account for 35% of Australia’s gross domestic profit and employ 44% of Australia’s workforce. Of the 877,744 total hiring companies, 823,551 are small businesses (93.8%), and of those businesses, 627,932 are businesses that use only 1-4 people, known as micro-businesses (2019).
However, the main challenge facing small businesses, according to the ABFEO Small Business and Family Enterprise Ombudsman in Australia, is the late payments of customer invoices. Just over half of small businesses receive invoice payments late, with late payments arriving an average of 23 days after they are due, causing cash flow issues to the company.
Accessing external capital to support cash flow is also becoming more difficult, according to Kate Carnell from the ABFEO. In February 2019, the big banks lending to businesses decreased by 2.4%, and since February 2018 it has reduced by 3.3%. However, we have seen immense growth over the last decade, and more small businesses are looking to us instead of the banks to provide them with working capital.
We fund business loans in Australia with different credit criteria than what the banks use, we can also get you the funds within 24 hours, instead of weeks like ANZ, Commonwealth Bank, Westpac or NAB. Capify can also fund businesses with low credit scores and that have had previous unpaid defaults.
If you run a small business, then you must have appropriate insurance. As the possible costs of being uninsured far outweigh the low price of insurance premiums. Liability insurance is essential to protect yourself and your assets.
Speak to a lending specialist today on 1300 760 930 to get funds in 24 hours or start your application and apply for a business loan to help you fund your small business insurance in Australia now.
The criteria we used to evaluate the top business insurance companies include:
Business Insurance Premiums are calculated based on a number of factors:
This article only covers small business insurance carriers, such as companies that develop the insurance products it sells.
Capify provides fast business loans in Perth and is one of Australia’s leading finance firms that obtain the purpose of providing funds and assistance to any business that require it.
We offer two types of loans of credit products, including; Merchant Cash Advance and Capify small business loan.
Capify is different from competitors with massive support in Australia, helping service brokers and providing easy access to unsecured business loans.
Capify is an alternative to the big banks like Commonwealth, ANZ, Westpac and does not offer a line of credit or interest rates; instead, they work with a fixed rate. Loan terms range from 3 months to 12 months, and their loan amounts range from $5,000-$300,00.
The great news is that Capify’s application costs are free, we don’t charge you when you submit an application for a small business loan Australia. It’s obligation-free and you can commit whenever you are ready.
A great financial product that Capify can provide is Merchant Cash Advance, where this revolves around businesses gaining a lump sum of money and repaying it through minor percentages of their EFTPOS transactions. This would greatly benefit the business as it would prevent cash flow shortages, thus they are able to have the cash to pay debt payments, expenses, and unexpected costs.
Furthermore, enterprises are also introduced to the option of Australian business loans that Capify can provide, increasing capital, thus increasing cash flow. Alongside this, they deliver expert advice that contains knowledge and techniques on how to improve cash management to assist in keeping your business as healthy as possible.
Capify is Australia’s first small business loan lender since 2008, we have built and maintained a google review of 4.5/5.
Speak to a lending specialist today on 1300 760 930 to get funds in 24 hours or start your application and apply now.
Capify Is one of the most trusted small business lenders in Australia. With TrustPilot reviews and Google reviews that speak for themselves, our story shows our dedication towards helping small business finance growth.
Get Business finance $5,000–$300,000 online quick and simple small business finance.
Instead Capify offers an agreed total payback amount. The payback amount depends on the type of business you operate and the term you require the business finance for. This way your business knows up front the total costs, making managing your cash flow easy.
A Capify business loan Melbourne can help you make your next purchase, fund growth, or manage cash flow for your business.
Capify provides fast business loans in Sydney and is one of Australia’s leading finance firms that obtain the purpose of providing funds and assistance to any type of business who require it.
We offer two types of loans or credit products including; Merchant Cash Advance and Capify small business loan. Capify is different from competitors with their ideal Melbourne business loans, and their ability to see potential success in businesses without being bias as much as possible on previous credit ratings. We are an alternative to the big bank and does not offer a line of credit or interest rates, instead, they work with a fixed rate. Loan terms range from 3 months to 12 months and their loan amounts range from $5,000-$300,00.
Capify is a fin-tech and purely operates online. We do not have a physical branch but have to staff Australia Wide.