Automotive industry
The automotive industry covers a variety of sub-industries including:
- auto electric repairs
- auto wreckers
- tyre retailers
- service stations
- mechanics and
- panel beaters.
But whatever your chosen small business is, it is essential to consider what is the right insurance for you. Get your choices right and your business is protected and risk exposure is minimised. Get your choices wrong and you might as well say goodbye to your business.
Some types of insurance are compulsory, these include workers’ compensation insurance (if you employ staff) and third party insurance for your vehicles, but this still leaves a seemingly never-ending array of other insurances to choose from.
How do I know what I need?
Following is a summary of types of insurance recommended for the automotive industry.
Most important insurance covers
- Fire and defined events insurance - covers your assets in case of loss or damage by fire or other defined events. Generally, this does not include flood but can include other water damage and malicious damage.
- Business interruption insurance - covers loss of income and increase in costs through not being able to trade as a result of fire damage.
- Public liability insurance - covers legal liability as a result of injury to the general public occurring as a result of your business practices.
- Products liability insurance - covers liability for the sale or supply of products and services.
Other recommended insurance cover
- Burglary - covers loss or damage as a result of theft.
- Money - covers any loss of money.
- Glass - covers costs incurred when fixing accidental damage to glass.
As an optional extra, you can also include insurance cover for a number of other risks, including general property, electronic equipment, machinery breakdown, personal accident/sickness or life insurance for any partner in your business. However, your insurance company or insurance broker should be able to advise you regarding the possible need of other insurances.
Where can I get small business insurance?
There are literally dozens of insurance companies, all vying for your business. A search on the web or through the yellow pages may leave you confused and dismayed by the choices available to you.
Telephoning or visiting each one individually is probably not an option so how do you choose?
Family, friends or other business owners may be able to advise you according to their experiences and preferences. Alternatively, you may decide to stick with an insurance company you are familiar with yourself. Your other option is to discuss your needs with an insurance broker. Insurance brokers act as agents for a number of insurance companies and they can find the best business insurance to suit you and your needs.
Finally, for information on small business insurance, tax, legal requirements, licenses, permits and other considerations, check out either the Australian Government’s small business website at business.gov.au or the New South Wales Government’s website at smallbiz.nsw.gov.au.