The world of business insurance can be hard to navigate. With so many products on the market and so many different providers, what you need and what you want can be hard to ascertain.
Depending on the type of franchise you operate, there can be what feels like a million different options to help mitigate the risks associated with running your own business. Below are 3 key business insurance products you should consider as a franchisor.
Cyber insurance
It goes without saying the internet is not only growing exponentially but our exposure and use of the internet as businesses is growing with it. With many businesses becoming more reliant on the internet to drive sales and marketing, it is important to understand the risks associated with it. Things as simple as a phishing scam or losing a mobile phone can have a negative impact on you and your customers.
The OAIC showed that in the last 6 months of 2019 alone, data breaches were up 19 per cent with 537 reported breaches. Given the amount of data you keep for your customers, it is important to not only do everything you can to hold that data safely but to protect your business financially if there is a breach.
Depending on the policy you take out cyber insurance can help cover the costs associated with something as simple as your phone being stolen or opening a phishing scam email all the way to a significant breach of your customer data.
Professional indemnity insurance
Professional indemnity insurance is particularly pertinent when the business you conduct involves you or your employees providing professional services or advice. Professional Indemnity Insurance is designed to protect the cover holder if they make an error or omission during their practice which has a negative impact on their client and results in a claim being made against them for their clients losses.
Even if you end up being right and an error wasn’t made on your behalf, the costs associated with defending a claim can be significant. Professional indemnity insurance can cover the costs of legal expenses and help protect your business and it’s assets.
Public liability insurance
Public liability is one of the most common business insurances in Australia. Everyone from sole traders to big business should consider it. It is very important when you have members of the public, customers or any visitors to your own premises or; if you have your own staff visiting premises of the public, customers, suppliers etc.
It is designed to help cover the costs associated with property damage to someone else’s property or personal injury sustained by someone that isn’t employed by you.
While it isn’t compulsory for all professions or businesses, it should always be considered.
Insurance can be tough to navigate and the above is just a guide. For more information reach out to a licenced insurance professional.
