Choosing the right type of business insurance for your small company
Finding the right level of business insurance can be vital in enabling full protection against unforeseen circumstances, covering costs that would be otherwise potentially crippling to a business. From possible compensation and legal fees to recovery of buildings and contents.
Business insurance is one of the most effective ways to maintain a stable, safe workplace and income stream. Any form of unanticipated crisis can threaten your business at any time and in some cases even leave your business with no option other than to cease trading until you are back up and running.
In fact, as many as 40% of businesses are unable to re-open as a result of underinsurance and miscalculated business interruption insurance.
With the correct level of business insurance in place, you can ensure that your small company survives through any hardship. You and your employees have invested considerable time, energy and commitment into your business, which is why you need cover that is flexible and can be tailored to your individual needs giving you peace of mind quickly and stress-free.
What type of business insurance do you need?
The types of business insurance cover that you need will depend upon your business focus. Perhaps you employ staff, or there is a chance a member of public could be injured as a result of your products or have an accident onsite. You may have buildings, contents, equipment or stock to consider, or perhaps your business gives advice or a professional service that customers rely on.
Whether you are a sole trader, self-employed or running a small or large business there will be many different aspects to consider. Here are some examples of the more popular forms of business insurance.
As a commercial business, there are some legal requirements in terms of insurances, and other non-mandatory business insurance options that may be recommended to protect your company depending on the type of business that you run.
Business buildings insurance
If you have business premises then an insurance policy will be required to protect against risks such are fire, storm damage, flooding and escape of water. If you are a tenant and rent your premises then the landlord will be responsible for insuring the building, unless the business has a shop front.
Business contents insurance
If your business relies on expensive contents such as equipment or stock, then you will also need a business contents insurance policy.
When business assets such as office furniture, laptops, machinery, kitchen equipment, or print presses for example, arent insured then you can risk the ability to continue trading should these items not be insured.
Business interruption insurance
Business interruption is an additional item of business insurance to consider which covers any loss of income during the period it takes you to get your business back up and running following disaster.
Without this cover many businesses find they are unable to re-open following incidents of business interruption as loss of revenue can be crippling to business.
Building contractors, engineers and estate agents are among the small business owners that are least likely to have taken out professional indemnity insurance policies: designed to protect businesses that offer professional advice that could result in a customer losing money.