If you’re registering an Australian company online, chances are you plan to operate a business through your new company.
Of course there are some exceptions, such as in the case of corporate trustees for an SMSF or similar, but in most cases the reason for registering a company is so that you can run your business through it.
Registering the company name is one of the first steps in setting up your business, but another very important area to be addressed early in the process is insurance.
Many new business owners think of insuring only their property. They will insure any company owned cars and any other real estate or property owned by the company, but there are other risks to be addressed.
On top of insuring their property, a new business needs to protect itself financially against being sued for various types of damage, whether that damage be caused to someone’s property or injury to them personally.
A company can protect itself in this situation through the use of public liability insurance. Public liability will cover any costs incurred by your company in the course of its normal business, and can cover cases generally up to $20 million.
As well as protecting the company financially, you also need to consider yourself and your family. In this case there are a number of different insurance covers that fall under the life insurance banner.
Life insurance can payout your personal and company debts in the event of your death, while income protection can replace your income if can cannot work in the business and generate earnings.
TPD insurance can also payout your personal and company debts, but this cover will payout if you suffer an injury of illness serious enough which leaves you unable to work ever again. And finally trauma insurance will payout a lump sum if you suffer a critical illness such as cancer, heart attack or stroke.
Setting up your new company can be a very exciting time, and registering your company online can make it easy, but remember make sure you get your insurance sorted out before you start trading through your new company.
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