For most companies, whether they are small to medium sized businesses or large corporations, insurance protection is a vital component of their operations and financial planning. Depending on your product or services, your business operations can be severely affected in the event of an accident, a natural disaster, the death of a senior figure, or other unforeseen circumstances.
Types of Business Insurance Protection
The complicated nature of business insurance can sometimes put off smaller businesses, but the law requires all businesses to have certain types of insurance. Below are some of the types of insurance a business may need to include in their cover, not only to meet legal requirements, but as a safety net to protect the company:
- Business Protection Insurance
Although a lesser-known part of insuring a business, business protection insurance is nonetheless one that most companies should consider, especially small firms. This type of insurance provides cover to help your business continue trading should a company owner or other key member get seriously ill or pass away. Business protection insurance also covers crucial aspects of a business such as shareholders and loan protection.
- Liability Insurance
Commonly referred to as ‘employers’ liability insurance, this type of cover is required by law if your business employs staff. Liability insurance provides cover should one of your employees get injured, suffer illness, or death and it is deemed to be a result of their work. Therefore, in addition to being a legal requirement, liability insurance also makes perfect business sense.
- Public Liability
As above, your business activities may be carried out around members of the public or private property, so cover is advisable. While not legally required, public liability insurance is essential to provide cover for unforeseen incidents that may involve the public and is also a requirement from most public sector clients looking to do business with any company.
- Vehicle Insurance
Just like we insure our private vehicles, businesses may also need to take out motor insurance that provides cover specifically for business use. The same applies even if employees use their own private cars and have their own insurance policies. If any vehicles are used for business work – no matter how minimal it is – then it is the company’s responsibility to ensure the right cover is in place.
With the added cost that comes from insurance premiums, some business owners may look to forego taking out cover for their company, especially as the prospect of events such as natural disasters affecting them may seem highly unlikely. However, it’s important to remember that any number of factors can come into play in affecting your trade, profitability, and continuation. For example, the impact that fire damage, burglary, or flooding can have on operations can end up being very costly, not to mention being a time consuming inconvenience.
Businesses, both large and small, should therefore get advice on the type of insurance required to provide adequate cover to ensure business continuity and security. In conclusion, your business needs insurance protection not only as a means to get financial cover in the event of any unplanned events, but getting adequate cover is also a great way to enforce continuity planning in the organisation that ensures the company’s stability and longevity.