Running a business is challenging and there’s always a risk that something could go wrong. While all businesses require some form of insurance, those working with the public should especially ensure they have the right amount of cover.
Did you know for example, it’s a legal requirement to have Public Liability cover in certain professions? Here, we’ll look at the importance of business insurance and what can happen if you aren’t adequately covered.
Assessing your insurance needs
There’s numerous types of business insurance available to cover every industry. Therefore, it’s important to understand your options and your legal requirements. The minimum insurance you absolutely need to have by law, include:
Buildings insurance – If you’re working from a physical location, it’s a legal requirement to have buildings insurance. The same as protecting your home, business insurance covers the costs if the building is damaged by theft, fire or floods. The costs of repair and complete renovation can be significantly high if a natural disaster strikes. So, it makes sense to ensure you’re covered if the worst does happen.
Employer’s Liability insurance – If you hire staff, Employee Liability insurance is another essential piece of cover you’ll need. This type of insurance is designed to protect your employees if they injure themselves at work, or fall ill. The only exception to this is if there is just one employee who owns at least 50% of the shared capital. It’s also worth noting even part time employees need to be covered.
Public Liability insurance – When working with the public, there’s a lot that can go wrong. If they are injured or suffer damages due to the work you’ve carried out, they could seek compensation. If any claims are made against you, it could prove to be very expensive! Public Liability insurance covers the costs of any damages or injuries sustained as well as the legal costs if it does go to court.
The above are the three main types of business insurance you’re required to have by law. However, there could be industry-specific insurance that you need too so it’s worth doing your research to find out exactly what the legal obligations are in your industry.
What could happen if you aren’t adequately protected?
Even if the above types of insurance weren’t a legal requirement, it would still be detrimental to ignore their importance.
One of the key challenges of running a business is ensuring it doesn’t fail. You work extremely hard to ensure your business is delivering a good level of profit and continuously attracting new customers. Without insurance, all of the hard work, money and determination you have put into building up your company could all get taken away in the blink of an eye. So, the ability to protect your business and ensure you don’t lose it is by far the biggest benefit of insurance, but it doesn’t stop there. Other benefits include:
- Financial protection
- Easier access to credit
- It boosts your reputation
The right insurance cover will really help to protect your earnings if something does go wrong. It also gives you easier access to credit as lenders are more willing to lend money if you’re insured. Then, there’s the peace of mind it gives your clients and customers. If you take out Public Liability insurance with a respectable insurer such as Trade Direct Insurance for example, your customers will trust in your services.
Overall, the right insurance is vital in business. If you aren’t adequately protected, you could be putting you, your company and your customers in jeopardy. It’s also important to read the small print and ensure the insurance policy covers everything you need it to.