Only about four in 10 Australian small and medium-sized businesses (SMBs) surveyed in 2022 had confidence they were fully covered for insurance risks in their operations.

Let’s tackle the top three insurance myths that persist among SMBs.

Myth 1: Your business is too small to need insurance.

SMBs can mistakenly believe they’re immune to possible risks due to their size, number of staff or revenue. Some assume that their home and contents insurance will cover their home-based business.

However they still must manage risks such as damage to the business’ premises and property,  interruptions due to supply chain, breakdowns and cashflow issues. They must also protect the health and safety of their employees and customers, and guard against online and cyber security risks.

Myth 2: My subcontractors have their own cover, so I’m safe.

Your subcontractor’s policy may only cover their liability, not yours, but their policy will likely cover them damaging the property of one of your clients, or doing below-standard work, for example.

It pays to ensure that the business has adequate insurance coverage and that contractual terms between the parties allows for recovery. Be sure to have a written agreement that ensures they are responsible for the quality and performance of their work and materials and how you’ll engage them.

Myth 3: General liability insurance covers everything.

General liability Insurance sounds like a catch-all phrase for risks, but it does have limitations. It may cover third-party injuries and property damage, and product liability claims. However, it won’t protect you from all damages, such as those due to intentional acts,criminal negligence, professional malpractice or environmental pollutions.

If you would like to know more about the best policy customised to your needs and circumstance, please CLICK HERE or contact us for more information.