Serious business man working on documents looking concentrated with briefcase and phone on the table<\/p><\/div>\n

As business owners, we sure do have a lot on our plates. Balancing the day-to-day of running a business with high-level strategic and growth activities can be enough of a challenge by itself. However, things can go completely off kilter if something goes wrong, and you don\u2019t have the proper protections in place.<\/strong><\/p>\n

A dispute or issue can turn things upside down very quickly, so it pays dividends to ensure you\u2019re taking a number of precautions to mitigate your own risk. Below are five simple tips for ensuring your business is covered.<\/p>\n

1. Choose your insurances<\/strong><\/p>\n

The need for business insurances can\u2019t be stressed enough. But when it comes to choosing the most appropriate options for you, there are the \u201cmust haves\u201d for any business owner, and there are those that are a little more specific to your field.<\/p>\n

Professional liability insurance is the number one \u201cmust have\u201d. Property insurance should be purchased if you own your work residence, workers\u2019 compensation insurance should be purchased the moment you employ someone, vehicle insurance if you have company cars, and product liability insurance is great if you sell, well, products. These are all fairly intuitive.<\/p>\n

You should then consider your industry. As an example, if you\u2019re a tradie who works outdoors, public liability insurance may be key. If you provide advice of any nature, professional indemnity insurance would be the way to go.<\/p>\n

Case in point<\/u>: A client who is an electrician was protected when a shopper tripped on a cable that protruded from works he was performing at a busy mall. He was just doing his job, but the shopper still broke her ankle and wanted her medical bills paid for \u2013 which they were, through the electrician\u2019s insurer. Without public liability insurance, he could\u2019ve potentially been out of pocket many thousands of dollars.<\/p>\n

2. Take advantage of industry bodies<\/strong><\/p>\n

One of the most useful steps a professional service provider can do to mitigate risk is to join an industry association \u2013 as a financial advisor, we turn to the Association of Financial Advisors. Industry associations help protect their members by providing guidelines, education, templates, tips and advice based on extensive experience and expertise in the field.<\/p>\n

Case in point<\/u>: In the financial services industry, self-employed financial planners often rely heavily on our industry bodies, the\u00a0Association of Financial Advisers<\/em>\u00a0and the\u00a0Financial Planning Association of Australia<\/em>, to liaise with government bodies on areas of concern. This has been invaluable considering the amount of attention financial services has been under to ensure regulatory compliance.<\/p>\n

3. Don\u2019t forget the government<\/strong><\/p>\n

The Australian Government itself is a fantastic resource for small business. Government resources can assist you in understanding relevant laws, such as The Corporations Act 2001. They can also help you in the case of claims with dispute resolution services. Staying up-to-date with the latest resources will keep you informed about any updates to legislation and services that may directly impact or help you.<\/p>\n

Case in point<\/u>: We once directed an SME owner who was owed $5,000 by a client towards the NSW Local Court for small claims. The client was compelled to pay upon receiving a notice from the court, meaning the SME owner wasn\u2019t left out of pocket for either the invoice, or any legal bills.<\/p>\n

4. Get everything in black and white<\/strong><\/p>\n

It\u2019s always prudent to get as much as possible in writing, such as agreements, contracts, requests, promises, and services rendered. This ensures full transparency for everyone involved, avoids miscommunication, and prevents any problematic \u201che said she said\u201d situations.<\/p>\n

Case in point<\/u>: Even emails can do the trick \u2013 not everything has to be a fancy contract. This is often more about ensuring expectations are clear, as opposed to preparing for an extravagant legal battle. (But it always pays to be legally covered also, of course!)<\/p>\n

5. Leave nothing to the imagination<\/strong><\/p>\n

Building upon the previous point, it\u2019s crucial to be completely forthcoming regarding the exact service that you provide for clients. This means there will be no assumptions about what you do and, more importantly, what you don\u2019t do, reducing any confusion on the part of both parties. And very importantly \u2013 don\u2019t be tempted to overpromise just to win a client! You\u2019ll definitely regret it if you can\u2019t deliver.<\/p>\n

Case in point<\/u>: Over-delivering can be as detrimental to your business as under-delivering, if you are misdirecting scarce resources. If a client is pushing you to deliver more because expectations weren\u2019t clear from the outset, you may punish your more patient clients by putting them as a second priority just to please the first client. This may potentially work in the very short term\u2026 but certainly isn\u2019t a sustainable long term solution for you, or your business.<\/p>\n

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