One of the first rules of business is protecting your investment – and one of the best ways to do this is to take out insurance.
Business insurance focuses on three main areas that can trigger financial problems:
- Legal liability
- Business protection
- Loss or damage to assets
Legal costs and compensation if something goes wrong can wipe out a business. Trading can also suffer from a tarnished brand or image.
When weighing expenses against the benefits of business insurance cover, the cost and peace of mind from having cover is relatively cheap.
Don’t forget the full costs of business insurance is set off as an allowable expense against income.
If you employ anyone full or part time, your business will need employer’s liability cover by law. Often, this comes bundled with public liability cover as well.
Employer’s liability protects your business from claims by current employees and past employees who may have contracted an illness or injury while they were with your business.
Public liability deals with claims from anyone you do not employ who visits your business premises and may have an accident. This applies to working at home as well as working from a business premises, like a workshop, shop or office.
Business protection involves claims for poor advice or defective workmanship.
Professional indemnity covers advice and is often a regulatory requirement for professionals like lawyers, accountants and financial advisers.
Liability insurance covers loss or damage to client property – like repairs to computers. Other specialist cover is available, for instance to builders and taxi drivers.
Loss or damage to assets
Most businesses have some assets – even small, home-based operations generally have a computer. If you work from home, check business assets are covered on your home insurance.
If not, take out a specialist business contents policy.
Think about your bigger assets as well – business premises, cars, vans and essential tools and equipment.
Business interruption insurance that covers your sales income in the event of a fire, flood or other disaster is also worth considering.
To pick up a tailored business insurance solution, speak to an experienced insurance broker.