Whatever you do there is at least some risk involved. A car accident, building fire, injury at work or illness that stops you from working, a customer injuring themselves on your premises, death of an income earner (that would leave a family without support) are just a few of the events that could have a devastating affect on your life or that of your family. Insurance protects you against that risk by transferring the cost of that risk to an Insurance Company through the purchase of an Insurance Policy. After risk assessment, the Insurance Company agrees to compensate you for a loss or a portion of a loss if you pay regular premiums.

 

Insurance assessors or Insurance Brokers can analyse your needs and advise on a policy that will protect you, your family and your assets.

 

A business will generally carry several types of insurance including liability, property, Workers Compensation, automobile, health and disability. The type of insurance required will depend on the type of business. Often Directors and Officers will also be covered by life insurance or business interruption.

 

Generally some forms of insurance are mandatory, such as Workers Compensation (will pay an employee part of their wage as well as medical expenses related to an on the job injury). Keeping a safe environment that minimizes risk resulting in a long term safety record can indeed lower the premiums.

 

Business vehicles and property generally have to be insured for larger amounts than non-commercial interests as they present a greater risk. Many Insurance companies reward customers with lower premiums if they put into practice methods that reduce risk, such as safety training courses for employees, installation of theft deterrent systems (e.g. in shops or company vehicles), sprinklers and other options that lower risk.

 

Some types of insurance:

 

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Casualty & Liability

Generally underwritten to cover losses directly related to an accident. This might include medical bills of those injured, repair of items damaged, and so on. Car insurance is one example.

 

Assets and Revenue Insurance

Protects your assets and revenue generating capacity. (e.g. building and contents, burglary, business interruption or loss of profits, fidelity guarantee, machinery breakdown, motor vehicle)

 

People Insurance

Workers compensation, personal accident and illness, income protection and disability insurance, trauma insurance (provides lump sum when diagnosed with specified life threatening illness), life insurance, total and permanent disability insurance.

 

Liability Insurance

Public liability (protects you and your business against financial risk of death or injury to a person resulting from your negligence), professional indemnity (provides indemnity against a client suffering losses as a result of your advice), product liability (protection against injury or damage caused by faulty goods sold by you that cause injury or damage to another business or person).

 

Flood Insurance

Generally underwritten under programs as a part of disaster mitigation to help cover expenses in the event of a flood. Due to the need in some flood zones and the high risk associated with them, these policies are generally available in areas that have put effort in to reduce the potential loss due to a flood.

 

There are many more examples of insurance depending of the operations and requirements of a business.

 

Depending on your role (whether employee, management, or an outside contractor) your involvement with insurance planning may vary. You will need to have an understanding of the assessment of risk to your business, self, employees and public and your legal requirements relating to your business. In regard to job safety an organisations policy showing its commitment to a safe work place should be set out clearly, communicated and available to all employees, updated regularly and posted on employee notice boards.