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Planning ahead for small business risks

Author: John Elliott
by John Elliott
Posted: Jun 21, 2016

Small businesses need help when they start out. Risk management is an important component for small businesses and many tradies can overlook this due to the increasing demands of their business. It’s only when something does go wrong that many small business owners stop to consider the areas that can pose risks. So prevent huge financial losses. Don’t for things to go wrong before addressing issues. Get a risk management plan together and put the right small business insurance in place to protect yourself before you start.

The most common risks for small businesses

Health and safety – These are the risks associated with illnesses and injury to your employees, to third parties, and to yourself. Health and safety issues can include accidents, exposure to chemicals, or illnesses developing over time. Combat this risk with Workers Compensation Insurance for your employees, Public Liability Insurance to protect third parties, and Personal Accident and Injury Insurance to protect yourself.

Security – This is the risk associated with your general property, tools, and equipment. It’s important to make sure that your businesses assets are well protected. Combat this with General Property and Tool Insurance as if your tools go missing, are damaged, or stolen, you’ll want to get back on your feet as soon as possible to continue working.

Environment – These are the risks that the environment around you poses. It can include fires, storms, floods, hail or any number of natural disasters. These are unforeseen circumstances and are out of your control. Protect your things with Tool Insurance so you don’t have to fork out the cash yourself.

Service delivery – How you deliver your service can also pose risks. You’ll need to cover yourself should your products or services not live up to client expectations or something goes wrong after you leave the premises. Public Liability Insurance will protect you should something go wrong such as a client tripping over your tool cords, or the shelf you installed falls on a client after you leave the house.

What’s next?

These are by no means the only risks that your business will face, but they are some common ones faced by all businesses. Every business is unique and yours will likely have its own individual small business risks that need to be insured. Risk management can involve assessing and implementing strategies to minimise the risks, however no matter how careful you are – things still go wrong and can be out of your control.

Once you have identified your risks it’s time to put insurance in place to protect your business. Armed with knowledge, you can find out which policies are going to suit you best. Insurance is a very effective way of helping to protect your back pocket. And under-insurance itself is a huge risk for small businesses as it can be very expensive should you not be insured in the event of a claim against you.

To discuss insurance packages for you small business and obtain and business insurance quote, contact AllTradesCover today. We are expert small business insurance brokers and specialise in trades people and contractors. Visit the website at www.alltradescover.com.au. Or fill in the easy online form for a quick insurance quote. All information provided above is of a general nature, if you need specific advice we recommend speaking to a broker.

About the Author

AllTradescover is Australia's fastest growing trade insurance provider offering low cost tradesman liability insurance and public liability insurance packages. Request a quote today.

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Author: John Elliott

John Elliott

Member since: Feb 22, 2015
Published articles: 21

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