What Kinds Of Insurance Does A Small Business Need?
jjfr
As a business owner, you’ll likely already have plenty on your plate. When it comes to arranging your business insurance, it can seem pretty daunting – after all, there are so many different areas and items which need to be covered – but it is something that you need to do as soon as possible.
Business insurance is designed to protect businesses from the risks that come with day-to-day operations, as well as futureproofing your business and ensuring the longevity of your company.
Contrary to popular belief, finding the right business insurance isn’t as complicated as it may seem.
When considering which business insurance you need for your business, it’s important for you to know about the different kinds of cover that you might need.
There are many different kinds of insurance that a small business may need – let’s take a look at some of them in closer detail.
Public Liability Insurance
If your business comes into contact with members of the public, then you should be considering taking out public liability insurance.
Whether people are visiting your premises or other locations, public liability insurance can protect your business against compensation claims made by clients, customers or other third parties for injury or damage.
Businesses such as salons, builders, cafes, restaurants, and trade services typically take out this kind of insurance.
We all know that accidents can happen, but should someone in your business accidentally cause property damage or injury to a member of the public, you may find yourself facing heft legal fees and compensation payments which could run into the millions.
This is why public liability insurance is so important as it can ensure that your business is kept up and running.
You may also find that some clients or suppliers request that, in order to work together, you have public liability insurance.
Business Building Insurance
If you have a business premises, or even if you work from home, business building insurance should be a priority.
Whilst commercial building insurance isn’t a legal requirement, but if you own a commercial premises, then you should consider taking out this type of insurance cover.
With this, it doesn’t matter what type of property you or a commercial landlord owns – there is always a risk of property and building damage.
For example, if you have a warehouse property, it could be hit by a fire which destroys your stock. Or, your brick and mortar store could be affected by a flood in the winter months.
This type of damage won’t just put your business out of action for weeks or months – it can be very expensive to repair.
Even just a broken window can affect your business. But, by choosing to take out business building insurance, the insurer can pick up the cost instead, leaving you free to focus on your business.
If you are the property owner, then you’ll find that many mortgage lenders will require that you have business building insurance.
Key Person Insurance
As a business owner, you don’t really want to think about worst case scenarios.
But, it’s best to ensure that all bases are covered in the unfortunate event that you, or another key person in your business, becomes terminally ill or passes away.
The money from key person insurance cover can be used to find a replacement in the event of this happening and helps continue trading.
Key person insurance put, is a policy that will protect you from the financial loss it may suffer as a result of a key person falling seriously unwell or passing away.
It’s a policy designed to give stake and shareholders in the business confidence that the company can survive and thrive, even in the sudden and unexpected event of a key person becoming unwell or passing away.
How To Find The Right Insurance For Your Business
When looking for business insurance, you need to think about how you can protect your business immediately, as well as move forward. You also need to take your current business needs into account.
For example, if you don’t yet have a team in place, then you don’t need to worry about having employers’ liability insurance just now.
Still, if you’re planning on growing your team in the near future, then it may be worth adding to your policy now.
Small businesses require many different types of insurance, but it all depends on the setup of your business.
Suppose you’re not sure which insurance policies are best suited to your business. In that case, you may want to consider enlisting the help of a business or life insurance broker who can search for the best policies and cover for your unique business needs.
Category: Insurance
