Growing is all about taking chances. For instance, your business will grow faster or slower depending on how ready and willing you are to take risks. Therefore, it’s really important for any entrepreneur to take precautions, and protect his or her business against these pitfalls. Your entity will be exposed to risks from day one; it can only take one lawsuit to force you to close shop even before you get the chance to see it grow into something incredible.
The good news is, any business owner can now access a wide range of insurance types available in the market. With these policy types, you can ensure you and your business are protected against anything.
Listed below are several types of insurance that can be useful for any business, with a brief description of what is covered and when they are needed.
Professional Liabilities Insurance or Professional Indemnity Insurance
This coverage will help you to protect your company from clients who might accuse you of providing inadequate professional services, or services that have caused financial harm to them. No matter how long your company has been in business, mistakes can still be made, making this type of insurance an important consideration. The policy will cover legal costs and expenses accrued in defending the claim as well as any compensation which is awarded, and provides peace of mind against loss of data, documents, goods or funds; defamation/libel; unintentional breaches of copyright/confidentiality and more.
Employers Liability Insurance
In case one of your employees suffers an injury, this policy will protect you against the cost of compensation claims. Even if you feel like you’re operating in a low-risk working environment, this policy is a legal requirement for any business employing workers. This is one reason why small business owners sometimes opt to use freelance workers rather than employing regular staff in the workforce.
Property insurance is the one policy that will offer financial reimbursement if by any chance the premises are vandalized or damaged in any way. The policy will cover the structure together with all the contents inside. You will need to talk to your insurer for a different coverage if your area is prone to mass-destruction events such as earthquakes and floods, although fortunately the UK does not often face these conditions.
The fact that almost all professionals start their businesses at home is not shocking news anymore. The cost of living is high so we all have to do what we have to do to survive. Sadly, a homeowner’s insurance cover won’t protect your home-based business the same way commercial property insurance would. You’ll have to first move the business out of the house, and then talk to your insurer for an additional insurance which protects your inventory and equipment.
Product Liability Insurance
This policy is designed for professionals who supply products to the general public. It will protect your business against claims of property damage or personal injury caused by the sold products. With this coverage, you won’t have to spend a penny settling any legal or court expenses.
There’s always the possibility of your company car being involved in an accident. That’s why is probably a good idea to go for a policy protects you against any liability. If an employee transports the goods in his or her personal car and is involved in an accident, their personal car insurance can protect them.
Business Interruption Insurance
Some people know it as the Business Income Insurance; i’s the one coverage that helps your business get back on track after a financial loss caused by a disaster. So if you think you lost a lot of income during the rebuilding process, or were forced to close the business due to a natural calamity, this policy could be used. It’s important to be aware that this type of insurance only covers against disasters, it does not insure you against seasonal slumps in sales. If your small business experiences cash flow issues at certain times of the year, read our top tips for maintaining a profitable business during quiet periods.
Protect yourself and your business by getting the right insurance. Speak to the experts at Neil Smith Accountancy if you need guidance on which policy is right for your business.