Some business owners don’t consider business insurance as being essential and feel it’s an expense they would just rather avoid. However, even with the financial considerations, this should definitely be a incorporated into your budget. Accidents unfortunately do happen, no matter how hard we try to avoid them, so the protection that an insurance policy brings will support the success and growth of your business in the long run.
Having business insurance will mean that in the event of a major loss, you are still able to keep your business up and running, rather than losing what you have worked so hard for. When a company carries insurance, loss and closure are normally only temporary following an incident or accident - rather than potentially permanent if there is no cover in place at all.
Many people think business insurance simply covers events such as fire or floods; however you also need to consider liability. If a client trips over a wire in your office and is hurt, or one of your products has a defect and results in injury to a customer; this will likely cost much more in legal fees if you have no insurance cover, than the price of taking out the policy would have cost.
You will need to consider aspects such as liability, theft, fire and flood, litigation, and personal injury and illness. The level of coverage you take will depend on your industry and the size of your business. When you exhibit at trade shows, or even just set up a small stall in Braintree town centre for example, you will be asked to prove you have public liability insurance. Without it, you are uninsured and liable.
If you are not covered, you risk losing your assets and worst case your business altogether if the incident were something major. As the owner or director of a company, it is essential to understand the role that business insurance plays and how your organisation will benefit from it – even if it is only from the peace of mind it brings.