• When you are starting a business you need to make sure that you are adequately insured.
• There are many compulsory insurances for small business owners and various optional insurances depending on the amount of risk you are comfortable with.
• The risks associated with being under-insured are substantial. If an accident happens in your business and you are not adequate covered your business could be closed and you could potentially be subject to personal liability.
• The appropriate insurances will be dependent on your particular situation. For example if you intend to employ workers you will usually need workers liability insurance in case anything happens to your employees while at work.
• Some businesses will also need to consider public liability insurance. Public liability insurance protects you and your business against financial loss if you are found liable for:
  • death or injury of a person; or
  • loss or damage to property.
• If your business provides professional services such as medical, legal or accounting services you may need professional indemnity insurance. Professional indemnity insurance can protect you if a client makes a claim against you for:
  • negligence;
  • omissions; or
  • errors.
• If your business involves the sale and supply of goods you need to consider product liability insurance. Product liability insurance can protect your business against claims for products which have caused:
  • Injury;
  • death; or
  • damage.

Engaging a lawyer in the early stages of starting up your business can ensure that you are aware of the legal risks and liabilities that are involved in your particular line of work. Knowing what risks exist allows you to obtain adequate insurances to protect your business against financial risk and yourself against personal or professional liabilities.