Australian Immigration Daily News

Small businesses are the backbone of our economy, employing nearly 5 million people across industries as diverse as retail, trades, manufacturing and professional services.   However 90% of all small business start ups fail and among these businesses are numerous examples of businesses that have been forced to close their doors due to not having enough insurance cover when they need it the most.

There are a multitude of incidents that could happen to a small business that could be cause for an insurance claim.  This could be anything from a customer injuring themselves whilst on your premises, damage to property and contents, office equipment failure, a fire through to poor advice.

So what could go wrong if you don’t have enough insurance?

1. Potential for Lawsuits

A small business may not think they have enough assets to be sued, or possibly that they could manage any claims that they could potentially face.  The reality is we live in a litigious society and one incident or piece of bad advice, such as advice resulting in a clients visa being denied, could have a customer calling a lawyer, and the resulting claim could run into the 10’s of thousand. Regardless of the size if there isn’t the cash within the business to payout the claim the business could be forced into bankruptcy and the owner could be held personally responsible for these debts.

2. The Ability to Continue to Trade

When there is a serious incident, for example a fire that damages premises, that stops a business from operating for an extended period, it’s not just replacing the contents and getting systems and operations back up and running that’s a major consideration.   It’s also covering operating expenses such as rent/mortgage, any wages, electricity or contracted commitments that needs to be considered.  Business won’t be coming in, and the bills will keep coming so unless there are healthy cash reserves to keep the business running, a business will need to rely on cover for Business Interruption.

3. Employees

If you have employees they also deserve to be protected and carrying Business Interruption insurance for your business can help safeguard them as well.  And the other more unfortunate side of not being able to earn an income is having to let staff go. Imagine the sunk cost of recruitment, training, intellectual property, relationships they’ve developed – a high impact in a small business. And of course there’s the emotional impact of letting good staff go.

4. Brand and Reputation Damage

Even if a claim is made against you that you can afford to pay out, you may not want to.  If the event was not legitimately caused by you, you will want to defend your reputation as a migration agent and your brand, which may mean costly legal action.  Not defending yourself, could cause costly damage to your brand. 

You’ll want to have insurance not only to ensure your business can keep going if it suffers a serious mishap, but also to protect your staff and your customers.  Having good cover means not only that you can carry on in your business, but also that you will be able to defend yourself and your good name.

Of course in many industries and occupation types business insurance is compulsory and this certainly is the case for Migration Agents where in Australia Migration Agents are required by law to hold Professional Indemnity insurance for $250,000 (section 292B of the Migration Act 1958).

With Professional Indemnity Insurance being  compulsory for Migration Agents, we’ve partnered with BizCover – Australia’s leading online provider for business insurance. They’ve done the hard yards of shopping around so you can get the right cover at the right price, from Australia’s top insurers, instantly online. What’s better is the exclusive 38% discount on your Professional Indemnity Insurance from BizCover – simply note MABIZ001 when you phone them for a quote on 1300 249 268 or visit www.bizcover.com.au

BizCover Pty Ltd (ABN 68 127 707 975; AR 338440) is a corporate authorised representative of Mega Capital Pty Ltd (ABN 37 098 080 418; AFSL 238549). Please note that BizCover acts as the agent of the insurer in respect of the insurance products offered on this website and not as your agent. Any advice does not consider your individual needs. You should consider if the insurance is suitable for you and read the Product Disclosure Statement or policy wording before buying the insurance.