It may sound paranoid, but there are a lot of risks involved with running a small business, especially as it grows over time. Your business could suffer from theft, an employee could slip and fall or your workplace could go up in flames. There are plenty of sound arguments for getting a comprehensive business insurance package. Here are 4 of the top considerations.

1. Are you underinsured and underprepared?

Underinsurance is a common problem for many small businesses, as owners often don’t realise their current cover isn’t adequate enough until it’s too late and they have to make a claim.

According to Gerard McDermott, executive general manager at GIO Business Insurance, most small business owners are reluctant to upgrade their insurance because of the increased costs. He advises business owners to speak with their insurers about possibly paying insurance by the month to even out the cashflow.

Allianz Australia managing director Terry Towell says small business owners need to remember to regularly review their insurance cover as the company grows. Many people tend to simply buy the same amount of insurance cover each year, without considering the changes the company has undergone in the past year, such as acquiring new equipment, the hire of additional employees or a growth in profits.

2. If someone slipped on a banana…

You have to protect more than the physical assets of your business, says McDermott.

“Businesses need to consider insurance like public liability which covers the legal costs associated with damage to property or personal injury at your business premises that your business is liable for,” he says.

3. If you’re happy working at home

Many start-ups operate from home and need to check their business equipment is insured. David Webber, executive manager of AAMI Business Insurance suggests

home-based business owners sign up for their business and home and contents insurance with the same insurer, so there are no gaps in coverage.

According to McDermott a typical risk for home-based businesses is theft of property, such as computers, machinery, telecommunication and office equipment. These items can be covered for either reinstatement or replacement value, depending on your preference.

4. Do you need a broker?

Another consideration to keep in mind when signing up for business insurance is deciding whether you’d like to consult directly with an insurer or hire a broker.

“A small business’ decision on whether or not to use an insurance broker can depend on a range of factors. These include the complexity of a business owner’s insurance needs, which may be related to the sort of business being conducted,” says Towell.

Some insurers offer small business insurance packages directly to business owners, and tailor them for different sectors such as retail, wholesale, hospitality and professional services, Towell adds.

It’s a matter of personal preference.

Some business owners may feel more comfortable dealing with their existing home and contents insurer as they’ve already developed a relationship with the company. Others like full control over their own insurance, so they choose to deal directly with an insurance company. As there’s a lot of information online about various insurance packages, it’s possible for some owners to simply research different companies themselves.

However, one of the advantages of having a broker on board is he or she will have a broad knowledge of most of the insurance products on the market and will be working in your interests when considering your business’ needs. The broker can also manage all your insurance affairs for you, such as organising renewals and handling claims.