As a business owner, you need the peace of mind that you’ll be able to keep your business up and running, whatever happens. Taking out business insurance is an advisable step towards protecting your livelihood, and here are some of the reasons why:
1. Cover for claims against you
We live in a world that advocates the view that “where there’s a blame, there’s a claim”, meaning that business insurance is a sensible precaution. Whether it’s professional indemnity insurance to cover you if you’re sued by a client for a mistake or poor advice, or public liability insurance in case a member of the public is injured on your premises, business insurance is there to keep your business afloat should the worst happen. It will help you cover the costs of legal fees and compensation payouts, which could otherwise significantly eat into (or even wipe out) your profits.
2. Protect your assets from the unexpected
We’re lucky in the UK that we don’t experience natural disasters such as major earthquakes, hurricanes or volcanic eruptions, but that doesn’t mean that businesses in this country are immune to unexpected ‘acts of God’. Floods and fire are two crises that could, completely out of the blue, spell disaster for your business. Could you afford to rebuild your premises and replace all your equipment if your business were affected? Where would your business operate from while you were rebuilding?
And it’s not just Mother Nature that could wreak havoc on your business. Theft, arson and other forms of criminal damage to your buildings, vehicles and equipment could result in big losses that could even force you out of business. Having the right business property insurance policy will provide the cover you need to protect your assets, and the peace of mind that goes with it.
3. It’s (sometimes) the law
If you have employees, you’re legally required to have employers’ liability insurance. While it’s not the law that you take out other kinds of business insurance, you might find that it’s effectively mandatory depending on your profession. That’s because some regulatory bodies insist on it; if you’re an accountant or solicitor, for instance, industry regulators require you to take out professional indemnity insurance.
4. It shows that you’re a professional
Taking out business insurance shows that you’re a professional who’s serious and conscientious about what they do. Having business insurance cover in place adds to your credibility, helping to show potential customers or clients that you’re someone they can trust.
5. Some companies require it
If you’re a freelancer or contractor, some big organisations might require you to have business insurance as a condition of working with you. Similarly, if you’ve taken out loans to pay for things like your office or cars, you’ll probably find that insurance is a stipulation of your financial agreement.
If you’ve not yet taken out insurance for your business, or you’d like to find a better deal, find out more about business insurance with A-Plan.