A Business Toolkit for Indigenous Women 

• Yarning with Indigenous women in business 
• Introduction
• How
• Tips
• Useful Resources

All businesses need to insure against all kinds of risks. This Fact Sheet sets out some of the different kinds of insurance and the reasons for them.

Yarning with Indigenous women in business

Introduction

Businesses need insurance to cover the costs of possible events and consequences like theft, illness, fire or accidents. The decision to take out insurance may be a simple one – insurance might be required to comply with a term of a contract, lease or mortgage or it might be required by your profession. Other types of insurance are required by law. For example, Compulsory Third Party (CTP) for a car or Workers Compensation Insurance for employees. But there are other decisions which are less straightforward and this Fact Sheet provides some information on the issues.

How

Insurance is about the transfer of risk. If a business is at risk of certain events it pays the insurance company a premium and the insurance company agrees to provide the business with financial assistance if specific events or risks occur.

To get the right business insurance think about the kinds of risks the business might face and talk to insurance providers about what is covered by their policies. It is important to get a policy which covers all your specific needs.

If you have a number of different needs, or want help with comparing different policies, insurance brokers can help you to find the most appropriate policy for your specific needs. The National Insurance Brokers Association can help you to find a broker in your area. Not all brokers charge for their services so always check if you are going to be charged you for their services and how much they charge.

Some common types of insurance include:

Public liability insurance

This insurance is often required for government contracts and in many other circumstances. It insures the business if something happens to people who come to your premises or events your hold. This might include customers and people delivering or picking up stock.

Workers’ compensation insurance

Workers’ compensation insurance is compulsory. Employers must provide it for their staff. It protects them if they are affected by a work related injury or disease. This also applies to employees working in a home based work place or home office. The law varies between different states and territories and it is important to check who must be covered by your policy. In some states contractors are covered if they work regularly for your business. Check also whether you, the employer, are covered by your workers’ compensation policy. If not check whether you should be separately insured for any work related accident or sickness.

In addition to workers’ compensation requirements, all businesses must run a safe environment for workers, complying with all occupational health and safety requirements.

Fire, storm and theft cover for the loss of any stock and equipment

Building and contents insurance protects your building and belongings in your home or premises against specific loss or damage. For example, your furniture, books, computers, stock and any equipment will need to be insured against theft and other events that would damage or destroy these important tools of trade. Check the details of the policy to be sure that it meets your needs. For example, insurance against theft might not include shoplifting. Or, insurance against fire and storm may not protect against flood damage. Also your insurance needs will be specific to your business and to your location.

If you are working from home it is important to insure all your business assets. Some people think that their home and contents policy will protect them against loss of their business assets if they are working from their home. Some specific policies will do this but many will not. Talk with your insurer about exactly what is insured because, in general, unless you get a specific Home Business policy, you will need separate business and home insurance to insure your property in your home based business.

If you have portable equipment like a laptop, tools or supplies you take with you, talk with your insurer about Personal Effects insurance. For example, if you use a laptop, portable catering equipment, a musical instrument, microphone, speakers, projector or anything else that you take away from your premises to do business, then make sure it is covered by your insurance policy.

Professional indemnity insurance

Professional indemnity insurance is necessary for work in a service industry providing advice or other services that other people might use and rely on. Government contracts generally have a term which requires the businesses to have professional indemnity insurance. This insurance protects the business and you from the costs associated with legal action taken against you for losses incurred by a client as a result of your advice or service. If your client incurs material, financial or physical loss directly attributed to your negligent acts this insurance covers at least your costs.

Personal accident, illness and income protection insurance

Self employed people often need personal accident or injury insurance to cover time when they might be unable to work. Associated with this is income protection insurance which can cover periods where you cannot attend to business.

Product liability insurance

If a product that you are selling, supplying or delivering causes someone injury or results in harm to another business or person because of some failure of the product, this insurance covers you for at least some the costs from any successful legal action.

Motor vehicle insurance

All vehicles must be insured for personal injury caused to other people by use of your car. This insurance is compulsory and your car cannot be registered without this insurance. In addition, you can insure against damage caused to others’ property, including their cars, by your car. This insurance does not usually cover the cost of repairs to your car if you caused the accident. You can also purchase comprehensive vehicle insurance which covers you for damage to your car and to other cars. If you borrow money to buy a car the lender will generally require that you have comprehensive insurance as a term of the loan.

Machinery breakdown

If machinery that your business relies on breaks down this type of insurance can cover the costs from loss of income.

Travel insurance

Travel insurance covers people while travelling outside Australia. It can provide cover for property loss (losing luggage or equipment) and illness and accident while travelling overseas. This could be very important if you became seriously ill in another country or if you property is lost.

Stall holders insurance

If you sell your products at festivals and markets you may or may not be covered by the event organiser’s insurance. If you believe your products might be at risk at an event, check whether the organiser’s insurance covers your needs, and if not consider your own insurance.

Volunteer insurance

If you have volunteers working at your business they should be insured in case they have an accident or are injured while volunteering at your workplace.

Event insurance

If your business relies on income from hosting major events event insurance will protect against losses from your event being interrupted, cancelled or postponed.

Fidelity guarantee

This type of insurance covers employers if their business suffers losses as a result of employees embezzling or stealing from the business.

Other types of insurance

If directors and office holders are held to be negligent in their duties, insurance can protect individual directors from costs arising from legal action.

Life insurance is often purchased by individuals, who use it as a savings plan, because the policy becomes payable at a maturity date. In other cases the policy is paid out at the time of the person’s death.

Useful Resources

Australian Government

• Check out workers compensation insurance at business.gov.au It provides links to information for each state and territory.
• Standards Australia has produced a number of publications on risk management. Check them out at the Australian Standard 4360 Risk management portal (http://infostore.saiglobal.com)