Whether you’re just starting in business or have been operating for many years already, one of your key considerations to keep your company ticking over and safe from potentially damaging claims or legal action should be investing in appropriate business insurance.
Depending on where you live, most states and countries stipulate that all businesses should have some form of cover to protect both them and their clients – however, even if your country of residence doesn’t require this condition, having comprehensive insurance just makes good sense.
What if I operate without cover?
Sure, most of us don’t like paying for things we don’t need, and it’s possible you could operate without issues not having insurance. However, if you’re caught short without cover, you’ll soon rue the day as costly legal fees can quickly build up, made worse by any potential fines or charges that might be imposed. As a general rule, all businesses should ensure they have adequate cover.
The main types of business insurance you should consider
The type of insurance cover you need will typically vary from business to business based upon your company structure, geographical areas of operation, and the types of goods and/or services you offer your clients. To find out what suits your company best, you should contact a specialist business insurance provider like kbdinsurance.com, which will give you sound advice on what you need to operate safely. However, as a general guide, the main types of business cover include:
Business contents insurance: Depending on the value of the equipment and tools you use daily to run your business, you should look at having business contents insurance. Also, it’s worth noting that, even if you work from home, many insurers will consider business equipment as not being covered under your general home insurance policy.
Public liability insurance: Many businesses don’t see the value in public liability insurance; however, should a client visit you and injure themselves, your business will be held liable to pay their claim and legal fees. Likewise, should you visit a customer’s premises and damage their equipment, this type of insurance will have you covered.
Employer’s liability insurance: Regardless of whether you only have temps, part-time or full-time employees, as soon as you have someone on your books, you’re legally obliged to take out insurance to cover your workers in the event of an accident or other problems. This type of insurance will ensure any associated bills or claims relating to employee or injury sickness are paid.
Professional indemnity insurance: If your business offers skills, knowledge or advice as part of its services, you will need professional indemnity insurance. This type of cover will settle any fees associated with you damaging a client’s reputation or doing something that might result in them losing sales.
Product liability insurance: If a customer ends up getting injured by using a product you have manufactured, designed, repaired or even sold, you will need product liability insurance to cover any associated costs.
Business interruption insurance: This type of insurance will help your business through difficult times when you’re unable to work and turn a profit due to unexpected circumstances – for example, if you suffer a fire or flood at your premises.