Business insurance may seem like a luxury, but it is essential
Insurance costs money, so many young companies figure they can go without it, at least for a while; this is a big mistake since the costs of accidents and mishaps can be prohibitive
Insurance may sometimes seem like a luxury when setting up a business, but can we really afford to be without it? The Newcastle Journal’s Mieka Schmidt says “No.” Blyth, Northumberland, U.K.-based Weir Insurance are authorized and regulated by the Financial Services Authority, and give ten reasons why insurance is not only a prudent purchase, but can often save your business.
1. The law: Employers’ liability is a legal requirement. You must provide cover for all people who work for you. This means that in the event of you being negligent, they are adequately protected against injury or loss.
2. The unexpected: We live in a changing world, and protecting our assets in more important than ever. Recent unpredicted floods cost the insurance industry more than £3 billion.
3. Missing opportunities: Often it is impossible to include your company on approved registers without insurance. Tenders will often make Public Liability cover mandatory. Local governments often ask for increased limits of indemnity before they will consider offering you a contract.
4. Blame culture: The general public are more aware of their rights to claim for injuries such as trips or falls, and are even encouraged to do so by media adverts. Even a small spill onto a customer in your restaurant can cost you thousands without Public Liability insurance.
5. Easy mistakes: No matter how careful or well trained we are, sometimes we can make mistakes when offering advice or professional services. Professional Indemnity insurance will cover you against claims for financial loss or “bad advice.”
6. Good business sense: A well-run business is more likely to survive longer, and will save money on its insurance. Insurers offer risk improvement advice, and can also help with advice on business continuity and up to date training requirements for your industry.
7. Keeping things going: It is always worth including some Business Interruption or Loss of Profits cover in your insurance policy in case you cannot trade after a loss. Remember you may still have to pay your staff wages.
8. All packaged up: Insurance companies have been insuring businesses for years, and have policies to cover the risks faced by even the best businesses.
9. Extras: For as little as £60, we can arrange legal expenses cover.
10. Spreading the cost: Weir Insurance says that it, and other insurance companies, understand the cashflow challenges which businesses face, and can arrange direct debit instalments to spread the cost.
