Insuring Your Small Business

Given the current economic climate, it’s no surprise that small businesses are tempted to take risks with their company to cut costs; whether continuing to work with old, substandard equipment or avoiding training staff sufficiently in customer service or health and safety. If there’s one area in which it’s particularly risky to neglect – its business insurance. If your small business does not have adequate insurance policies in place, you could be putting your entire company and years of hard work, at risk. An unexpected lawsuit can not only damage a business reputation by cost thousands of pounds in legal costs – bringing an organisation to their knees simply because they did not invest in a monthly or annual premium.

If you want to guarantee your small business is protected make sure that you look into the following insurance coverage:

Public and Employee liability insurance

Any business which employs staff must have Employee liability insurance by law. This insurance policy will cover any legal fees and compensation should a member of your staff by injured on the job. Public liability insurance on the other hand, protect the clients and customers that you work for. Should there be an accident on your work premises, or in their home if you deal with customers at their own property, your public liability insurance will again cover any court case costs and be able to pay out should you be held responsible for damages. This will keep you from any after the event insurance policies made against you.Most businesses wouldn’t have the funds to give out themselves, and still survive. If a customer was injured in a small family run fish and chip shop, for example, a law suit could turn their business into ruins overnight if not insured. Both public and employee liability insurance are a form of Before The Event insurance, meaning you pay before an accident has taken place to protect you in the event that it does occur. 

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Property insurance

In the event of fire or theft, property insurance is the policy that will give coverage for repair or replacement of your goods or buildings. It is not something a small business should risk going without. Although fire may not seem likely a hazard for your office or shop, unforeseen accidents and disasters can wreak havoc on a business if the correct insurance is not in place to assist as soon as possible.

Business interruption insurance

Business interruption insurance is another worthwhile investment for any small business. When the unthinkable happens to your business premises, like fire or flood, or you experience a personal injury and cannot work, this policy will provide compensation for lost income. This helps makes up for the work lost rather than for tangible goods or property.

There are other forms of insurance that may be suitable for your small business, depending on your sector. These include vehicle insurance and tool/equipment cover. If you believe your business may be lacking the correct insurance coverage, speak with a professional insurance adviser to discuss your circumstances and guarantee that you are getting the best protection possible.