Some new business owners consider business insurance as an unnecessary initial outlay. Is it really worth it? Should you get it for your business? Business insurance is considered as an investment that holds you up when you fall flat. A business can be insured in four different aspects: capital, asset, health, and life.
What are the benefits of business insurance?
- Stay protected from loss of income due to an unpredictable complication that forced you to close the business
- Stay covered against loss of assets through theft, break-in, and crime
- Stay protected to liability offenses that may come from wrong advertising, defamation, libel and many more
Every business is different and will have different insurance requirements. For example, a company that offers services may require different insurance than a company that manufactures physical goods. Hence, your business insurance need depends on the nature of your business.
Here’s a list of common business insurance policies that ensures your companies protection in any scenario:
Public liability insurance:
The key consideration for public liability insurance is if your business comes into contact with members of the public at your premises or elsewhere. It covers you against compensation claims made by a client or a member of the public who has suffered injury or property damage through your business or a product that it has supplied. Most restaurants, shops, builders, hairdressers, and tradesman opt for this insurance.
Professional indemnity insurance:
Professional indemnity insurance is vital if your business offers professional service/gives consultation to other businesses or if you deal with client data/intellectual property. If your client loses money and sues you, because of the mistake or error in your service, your professional indemnity insurance will cover both compensation claims and legal costs. Regulatory bodies including surveyors, architects, and accountants insist their members have this insurance.
Employers’ liability insurance:
Employers’ liability insurance policy is legally required if your business employs staff. This insurance covers compensation claims made by a staff member due to illness, accident, injury or damage as a result of their work.
Business legal protection insurance:
Business legal protection insurance is also known as business legal expenses insurance takes care of your commercial legal expenditure. It gives protection against the possible costs of legal action brought by or against your business.
If you hold any stock in storage or in your premises, stock insurance will cover the cost of replacing it.
Business buildings insurance:
Business buildings insurance should be a priority if you work from home or have separate business premises such as shop, restaurant, office or pub.
Business contents insurance:
Business contents insurance protects the contents of your business premises (business equipment and tools). If the contents are damaged, destroyed, lost or stolen, this insurance will pay the cost of repairs and replacement.
Please seek advice to make sure that your business is protected in all aspects. It is advisable to get your company insured so that your hard work will eventually pay off.