Not everyone feels called to be an entrepreneur who seizes opportunities when they see them coming. Some also dare to take the step into self-employment for other reasons. It is to avoid the threat of unemployment or because an idea crystallized during their studies that they now want to pursue in business life. In addition to numerous opportunities, self-employment or working as a freelancer also involves many risks.
The best way to protect yourself from entrepreneurial risks is through a well-thought-out concept. It is also through a solid business plan, a high level of commitment and smart decisions regarding boat insurance victoria.
Every self-employed person should have this insurance aside from boat insurance
Company and professional liability insurance
Business liability insurance comes into play when customers, suppliers, employees or visitors are injured and you as an entrepreneur are liable for it. The prerequisite is that the damage occurred because you or one of your employees were pursuing a business activity. Damage caused by the company building, the production facilities or the company premises is also covered. The claims for damages covered by business liability insurance include personal injury, property damage and financial loss.
Professional as financial loss liability insurance
Professional liability insurance is compulsory for some professions, for example for lawyers, notaries and tax consultants or for auditors and appraisers. Even a small mistake in the consultation or a missed deadline can already lead to the client suffering major financial damage. For example, the lawyer can be held liable. In such special professional liability insurance, only financial losses are usually insured, but no personal injury or property damage. A comparable policy is offered as financial loss liability insurance for other professional groups.
Business interruption insurance
Is a company’s production at a standstill because of a warehouse fire, or is a volcanic eruption preventing delivery? Then the company does not earn any money, although the operating costs are incurred continuously. But not only industrial companies or agricultural businesses are threatened with financial ruin. It can also happen to the self-employed and freelancers that they have to interrupt operations for a certain period of time.
The condition for the business interruption insurance to cover the damage is that it was caused by fire, mains water and storm or by burglary. Some insurance policies also cover natural hazards as a result of flooding or landslides. In addition, operations do not have to have come to a complete standstill. It is usually sufficient if an important operational function such as purchasing, warehousing or sales is disrupted. Therefore, some insurers also refer to this insurance for small companies, the self-employed and freelancers as loss of earnings insurance.