Get on that old in­sur­ance train

Western Suburbs Weekly - - Business -

Q: I have just started a per­sonal train­ing busi­ness. It is a mo­bile busi­ness with few real as­sets that could be lost or dam­aged, so I would ap­pre­ci­ate your opin­ion on what in­sur­ance I might need. Do I even need in­sur­ance? Greg – Shen­ton Park

A: You will ab­so­lutely need in­sur­ance! At the very least, you should get public li­a­bil­ity in­sur­ance; oth­er­wise what hap­pens if a client is in­jured and de­cides to sue? Li­a­bil­ity up to $20 mil­lion is com­mon­place. You will likely find that many venues won’t let you use their fa­cil­i­ties without in­sur­ance to that amount. It sim­ply isn’t worth the risk not to have it. I am as­sum­ing you are op­er­at­ing as a sole trader, mean­ing you are per­son­ally li­able for any costs as­so­ci­ated with your busi­ness, so a law­suit could cost you ev­ery­thing you own, not just your fit­ness equip­ment. I would also strongly rec­om­mend you con­sider the cost of re­plac­ing all your equip­ment be­fore you dis­re­gard prop­erty in­sur­ance. You say it is a mo­bile busi­ness. Can you af­ford to re­place your ve­hi­cle im­me­di­ately if dam­aged? Could you af­ford to re­place any lost or dam­aged fit­ness equip­ment? Or can you do without it un­til you can re­place it? If you an­swered no to any of these, then talk to an ex­pert about a busi­ness prop­erty pol­icy. Fi­nally, but prob­a­bly most im­por­tantly, con­sider in­come pro­tec­tion in­sur­ance to limit the im­pact of an in­jury or ill­ness that pre­vents you from op­er­at­ing your busi­ness ef­fec­tively.

Troy.macmil­lan@twd.com.au

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