Workers’ compensation insurance if you employ people
Motor vehicle third party personal insurance, which is included in the cost of your motor vehicle licence
Agent acting on behalf of an insurance company
Building and contents
Fire and other damage
Goods in transit
Fraud and dishonesty
If you operate a home-based business your house and contents insurance may not cover your business activities, and in some cases your policy may be void. Check your existing policy with your insurer and update your cover if required.
workers’ compensation (compulsory)
Personal accident, illness and life
If you are a sole trader or partner you are not covered by workers’ compensation insurance.
In the event of an illness or accident you may not be able to work and earn an income.
Insurance is strongly recommended to cover you in this circumstance.
A risk can be defined as an event or circumstance that has a negative effect on your business, for example, the risk of having equipment or money stolen as a result of poor security procedures.
Types of risk vary from business to business. You must decide on how much risk you are prepared to take in your business.
Some risks may be critical to your success; however, exposing your business to the wrong types of risk may be harmful.
Strategic – decisions concerning your business’ objectives
Compliance – the need to comply with laws and regulations
Financial – financial transactions, systems and structure
Operational – your operational and administrative procedures
Environmental – external events (weather or economic conditions)
Reputational – the character or goodwill of the business
Evaluate your business and identify any risks
Consider any external risks that could impact on your business
Your premises were damaged or not accessible
Your suppliers went out of business
You lost key staff members
Your health affected your work
You can assess each identified risk by establishing:
The likelihood (frequency) of it occurring
The consequence (impact) if it occurred
Consider controls that may assist:
Developing cost effective options to cope with risk
Avoid - change your business model
Reduce - modify current practices
Transfer - insurance, contracting
Accept - sometimes a valid option
Information source, Small Business Development Corporation, Western Australian Government.