#93 You DO Need Insurance, Here's Why, with Laura Meyer
This is the episode that so many of you have been waiting for. I talk a lot in my business about risk mitigation and my approach is that prevention is better than cure. I’m joined today by someone who shares the same view.
Laura Meyer from Meyer Insure is an insurance broker who not only supports me in my business and personal life insurance policies but also looks after many of my clients. This is to say, her insurance advice comes very highly regarded.
In the episode today, Laura takes us on a deep dive into insurance and answers all of the questions that I know have been plaguing many of you around this frequently misunderstood industry.
In our conversation, Laura explains where you should start as a business owner regarding insurance policies and how talking to a broker is the easiest way to get tailored advice that’s right for your business.
We discuss the fact that off-the-shelf products do little to consider your business, exposure and risk profile. Just having a Certificate of Currency does not mean you are covered for everything you may need to be. Laura shares that the biggest misconception about insurance is that one size fits all, and that can be a mistake that is fatal for a business.
Laura talks us through both professional indemnity and public liability insurance and the benefits of packaging insurance into ‘business pack’ insurance policies.
We also discuss insurance for retreats, worker’s compensation and cyber insurance and whether it’s possible to be over-insured.
Insurance is one of those things that we don’t love to think about (similar to legal documents) but is vitally important to get right.
I know you’ll feel much more comfortable on all things insurance after listening to this episode so dive in.
LINKS:
Resources mentioned:
Sole Trader or Company? | What is the best business structure for me?
Run your business from home | The legal requirements
Previous episodes mentioned:
#16 Why is Business Structure Important
#74 Should you engage an employee or a contractor?
#85 Let's talk about DIY Templates
Connect with Laura Meyer:
Website: https://meyerinsure.com.au/
Instagram: @meyerinsure
TOPICS DISCUSSED AND WHERE TO FIND THEM:
[00:28]: I talk a lot in my business about risk mitigation. I’m all about prevention being better than cure. Laura Meyer from Meyer Insurance is someone who shares the same view.
[1:45]: We talk about how both insurance and legals are often considered boring but can be fatal for your business if they’re not set up correctly.
[2:37]: For your business, your risk mitigation strategy is your business structure, your insurance and your legal documents. If you don’t have those set up correctly, you are unneccesarily exposing yourself.
[3:01]: We chat about service based businesses and where they should start with insurance. Laura recommends that talking to an insurance broker should be your first step.
[3:32]: Professional indemnity for a service based business is really important. This is not a one size fits all, off the shelf policy situation.
[5:23]: Having a Certificate of Currency does not neccessarily mean you are covered. Commonly people don’t dive into the fine print, and often don’t have protection for what they need.
[6:19]: Unfortunately insurance is one of those things that is difficult to understand but incredibly important to get right.
[7:14]: Laura shares that the biggest misconception about insurance is that one size fits all. That can be fatal for you business.
[8:46]: Public liability is not something we can just dismiss if we don’t have an office and have people walking into our office. Laura explains the circumstances that a service based business based from home would need public liability insurance.
[12:48]: Laura breaks down what public liability is and who it covers. She explains how how public liability insurers also assist with legal costs if you’re not found to be negligent.
[14:30]: Bricks and mortar businesses absolutely need public liability insurance. Depsite this, there is no law that requires you to hold public liability insurance, however many contracts (like commercial leases) require you to have it.
[15:30]: Often public liability will fit nicely into a business pack insurance - essentially packaging the risks you have into one neat policy.
[16:559]: Laura steps through the main perils that are covered by a business pack insurance, including theft, business interruption, plate glass and property.
[18:14]: Insurance requires tailoring to your business, which is why it’s so important to talk to a broker.
[18:38]: If you’re holding a retreat, does your public liability automatically cover you? Laura clarifies the details around this.
[19:03]: Your insurance is largely based on what you do, how much you earn and whether you have employees or sub-contractors.
[21:22]: Laura explains how to get workers compensation insurance and how brokers cannot help with this in most states.
[24:40]: It is so important to get it right regarding employees and sub-contractors and one of those reasons is insurance.
[25:00]: Cyber insurance - do we need it? Laura answers the million dollar question, explaining why it’s important to consider your risk profile and exposures.
[26:54]: Laura runs through the risks a service based business like a bookkeeper or accountant faces in terms of cyber risks.
[30:11]: When it comes to insurance, is there such a thing as overkill or too much? Laura explains the spectrum from the bare minimum to everything under the sun. Ultimately, adequate insurance leads to peace of mind, but it all depends on your risk profile.
[32:47]: This conversation has been so valuable. Laura shares how to connect with her.