If you intend to set yourself up in business, you may be figuring out how much you need to spend on initial costs and calculating your monthly budget. After all, you need to get a handle on your expenses before you even think about projecting your turnover. In order to come up with some accurate figures, you've got to take into account every operational cost, as well as crucial overheads. Yet have you taken enough time to consider business insurance?

You may realise that you have to have this type of protection in place but might not have considered all the different angles. The type of cover you need will vary according to the type of business in question and can be a complicated subject, so what do you need to think about?

What Do You Need?

If you intend to operate a business with employees that is based on a "bricks and mortar" building where customers have access, you probably have the most exposure of all and need to consider a variety of different types of insurance.

Buildings, Contents and Interruption

For example, you will need to cover the building (unless you rent it), but certainly the furniture, fixtures and other contents within, including any stock. You need to be able to replace everything in the event of a fire, flood or other loss. You also need to consider business interruption insurance, which can help you to cover loss of earnings in the event that you cannot access the premises.

Protecting People

Under Australian law, you have a responsibility to cover your staff, in case they are injured on the job and will need to look carefully at worker's compensation insurance. You also need to cover management against wrong decisions, or health and safety violations.

Public Liability

One of the most important types of insurance any business can put in place helps to protect against public liability exposure. Should somebody be injured when they visit your premises, this type of insurance could cover you and it will also help to protect you from claims that you or your organisation caused damage to their property, somehow.

Professional Liability

If you run a consultancy of any kind and simply operate out of your home, you still have to consider levels of insurance, including professional liability. In other words, if somebody suffers a loss as they took action based on the advice you offered as a consultant, this type of insurance could come to your aid.

Key People

Don't forget that certain individuals (perhaps including yourself) can be considered vital to the future of the business. You may like to consider key person insurance, which can protect against unwanted downtime, or even life insurance to take care of any matters should you encounter an unfortunate demise.

Are You Covered Properly?

As there are so many different types of insurance that could be applicable in your case, it's best if you discuss your needs with an insurance broker carefully, so you limit your exposure as much as possible.