We like to think of few things as being genuinely impossible, but running a business without experiencing some change would undoubtedly make the list. Whether you’re still new in the business owner world, a sole trader, or are an experienced business owner, you probably know by now that operating a business means constantly adapting and adjusting to keep up with the overall landscape – economically and socially. This however also means that the small business insurance policies you hold for your business also need to keep up with the changes your business goes through. If you don’t update and adjust your insurance as you change the way your business operates, or the way you work, you could be left without cover if you experience an unfortunate incident. Here are some of the common changes businesses operating today may be going through and how to approach your insurance requirements in light of these changes.

While it may feel like COVID-19 is long behind us, the resulting shift to remote work has very much become a regular part of life. Whether you run your business from an office, or from home will influence the type of insurance you need for your business. If you operate your business form an office, a Business Insurance Pack may be one of the most important covers you might need to consider. It is designed to cover your business’s tangible/physical assets if they’re damaged by events such as fire or storm. A Business Insurance pack also includes the option to include Public Liability cover which is designed to cover your business if you’re held liable for bodily injury or property damage to a member of the public.

If you run your business from home, firstly, check your Home Insurance cover to find out whether your office equipment is covered under your policy, as some Home Insurance policies may exclude office equipment if they are used as part of a business.

Even if your Home & Contents Insurance does provide full cover for your home office equipment, a Business Insurance pack may still be a handy cover to consider for home-based businesses as it is specifically designed for business owners. For example, if your home (and home office) suffers an incident such as theft or storm, and some of your equipment is damaged leaving you unable to work on your business for a period of time, a Business Insurance pack may provide cover for the income you lose during this time (if you select cover for Business Interruption on your policy).

If you take your equipment, (such as your laptop and/or phone) away from your office or home, a Business Insurance pack may also help protect your assets while they’re away from your office/home. Under the General Property Section of a Business Insurance pack, your portable items may be covered while they’re outside for incidents such as loss & damage.

Regardless of where you run your business from, if your business has a digital footprint, there is a possibility of falling victim to a cyber-attack. Staying cyber safe requires a holistic approach, including having appropriate security software installed on your devices; ensuring staff are aware of cyber safety practices; as well as considering Cyber Insurance.

Cyber Insurance is designed to cover your business for financial losses incurred as a result of a cyber attack. It may cover both the losses suffered by your business as a result of an attack (known as first party losses), as well as your legal defence as a result of legal action taken by third parties impacted in the cyber event (known as third party liability). Cyber Insurance may also include access to an incident response specialist, who can help coordinate the steps your business may need to take to recover from the cyber incident.

If you employ contractors or have virtual/remote employees, your Professional Indemnity Insurance may also be impacted, so there are a few additional boxes you’ll need to tick when it comes to ensuring adequate coverage.

Firstly, if your business provides professional advice, and you engage someone as a contractor to work for you, always ensure they have their own Professional Indemnity Insurance. On top of this, you will also need to ensure the services provided by your contractor is covered under your business’s Professional Indemnity insurance. This is because if a client takes legal action as a result of the incident its likely both the contractor and your business could be brought into the legal action. Ensure you ask your contractor to provide a copy of their Certificate of Currency to you before they begin, as well as an updated copy each year and every time it is changed.

Even if you don’t hire contractors and only have employees, if your staff work remotely or are interstate, bear in mind your business is still responsible for holding Worker’s Compensation Insurance in line with the state/territory your staff are located in.

With Artificial Intelligence (AI) quickly having found its way into many professions and daily uses, it is likely you may be using it in providing your services. If you have incorporated AI into your service, firstly ensure the policy you have in place doesn’t have an exclusion in relation to the use of AI. Even if there isn’t a specific exclusion, all your usual due diligence and risk management practices should stay in place to protect your business reputation. AI is a tool, and as useful as it may be, you remain the expert and are responsible for the delivery of the professional service including in any consultation, report or interaction.

If you are using AI to generate client reports, here are a few practices to be mindful of that may help prevent a professional negligence claim:

• The content of the report must be within your own knowledge, training and professional services.
• Ensure no confidential, sensitive or identifying information is uploaded/provided to any platform/software where not legally appropriate.
• Implement appropriate cybersecurity measures.
• Once a report is generated, review and assess the report for completeness and accuracy – no matter how the report is generated, as a professional, you are responsible for the content of any report to verify the accuracy and facts.

It is inevitable that your business will go through changes over time, but ensuring your insurance is up to date is an important part of your risk management. Even if you’re unsure whether you need to update your insurance or not, a quick call to your broker may help you clarify whether you need to change anything and may help prevent you being left out of cover should something go wrong.