Being a business owner requires a lot of work and commitment. Once you have the foundations of your business up and running there is no room not to protect yourself from risks that you can negate. It is extremely important to cover yourself for the ‘what ifs’ that you may worry about.
Why you need business insurance.
There are many factors to consider within your business; whether it be customers, employees, your premises or assets. These are all elements that make up your business and they will need to be provided with protection, for legal reasons too. No matter what size your business is it is vital to take out insurance cover. Whether you are going to a global insurance company like Lloyds of London or to a small local start up, it is equally as important and valuable to receive an independent evaluation of the risk factors that your business is exposed to.
Customers and the public.
If your business has products or services that can cause harm in any way to the public, your business could face thousands of pounds worth of compensation. When you are dealing with the public there is always a risk of accidents happening and this is definitely something you cannot afford to risk when it comes to your hard earned business.
Protecting your employees.
If an employee were to have an accident at work they may be entitled to financial support for loss of earnings as well as medical bills. Even if your business has very few employees, legally you have to have employees’ liability insurance. There is a minimum level of employees’ liability cover of 5 million; generally most companies take out a higher cover. It is worth considering the size of your business to determine how much cover you may require. Failing to do so puts you at risk of your business being shut down by The Health and Safety Executive.
Protecting your assets.
In the unfortunate circumstances of theft and damage to your business, not only will this cause distress but it could also leave you out of business for a long period of time. It is vital to insure yourself for this type of unfortunate circumstance as it will speed up the process of getting your business up and running again.
Aside from making the point of how vital it is to insure your business for protection there are also other factors you should keep in mind. Such as practising the art of being frugal; when you are in the early stages of your business you are at a high risk factor and need to remain wise regardless of your current profits. The key to a successful business is to remain focused and don’t get caught in the habit of ‘jumping’ at every opportunity. This is an easy mistake to make, before you make any rash discussions always go back to your business objections and consider whether the opportunity you have been offered will comply with your business model. Above all remember that your business won’t make millions overnight and any business decision you make will be the lead to your growing success.