When you set up a new business insurance may seem like an unnecessary expense, but however small your endeavour it is important that you invest in business protection, which will protect you through any bad times.
Lots of small businesses are tempted to do without business insurance because they deem it a complex and confusing process. This is especially true if you’re already trying to get your head around the other less-than-straightforward aspects of running a company.
Why is business insurance a worthwhile investment?
Quite simply, you need business insurance because it is a legal requirement in some situations – for example, if you employ someone or are a limited company. Here you’ll require liability insurance amounting to at least £5 million, which protects your business if a member of staff gets injured, becomes ill or dies as a direct result of their work. While you might not think this is a likely scenario in the sector you work in, consider the fact that there were 148 fatal accidents at work last year and substantially more major accidents.
Public liability is another business policy you shouldn’t be without as this insures you in case a customer or member of the public suffers loss or injury as a result of your company’s activities. It covers damage to property as well, allowing repairs, replacements and medical costs to be paid for. While this is not legally required it is certainly advised, in fact you might find some companies are reluctant to do business with you if you don’t have it.
If you’re starting a business, putting the right policies in place to protect your assets, your employees and your customers is just good sense. Remember; bad things don’t just happen to other people.