There are many financial issues to be addressed when starting a business, from organizing your accounting through to looking at your credit lines, it can be a confusing time with many outcomes that will need consideration, but the one financial matter that you truly cannot be without is good quality business insurance. It is very difficult to avoid all risks when setting up your business and an issue can arise at any time, with the long and short of the outcome being that without insurance YOU will need to cover the costs. There are many forms of basic business insurance policies so research is of the uppermost importance, having a look at AXA Business Insurance for example, will give you an overview of basic coverage.
Here are some of the reasons that business insurance is imperative to making sure that your business survives any issue that may arise.
Accidents and Liability
One of the most important types of business insurance is public liability insurance. This is the one type of insurance that will protect you in the eventuality of a member of the public having an injury or accident within your premises. If you as the business owner is found personally liable for the injuries caused, then this could mean the loss of other assets separate from your business, your home and car could be the most obvious ones.
There are not many companies that don’t have any clients, members of the public or contractors entering their building. Accidents can happen at any time, from falls to electrocution and you must make sure that you have a policy in place to cover all eventualities. If an accident were to happen, you will need public liability insurance that covers the injured parties loss of earnings, medical expenses and legal fees.
Negligence or Damage Caused by your Products
Whether your business is mature or brand new, the product that you sell can always give rise to legal issues. This could be through wrong advice being given to a product malfunction that causes harm to the user. Negligence claims are some of the most common forms of claims made against companies. To makes sure your business is covered for this eventuality, you will need to have a professional indemnity insurance policy in place. Again, like many forms of insurance, there are a variety of areas this will cover, the business, your assets, legal fees and loss of earnings. How much insurance coverage you take out will depend on the business you own, but some level of cover is definitely needed.
Protection For Your Employers
If you have one or more employers then you will need employers liability insurance. In many countries across the globe this is now mandatory, so you must check to see if you should have this insurance from a legal perspective. This form of insurance covers your staff against any accidents they may have within the workplace. One point to note is that it doesn’t necessarily cover them whilst they are within a works vehicle, like a van. For this you will need extra coverage, some companies offer this separately like AXA Van Insurance.
Within your business premises however, you must make sure you are covered, both for the employees sake and also if they are unable to work for a period of time leaving the business in a predicament. When you find the right level of cover for your business, you may find that it is a legal requirement to have a health and safety representative come to your office to check your building. You will receive a certificate from this that must be displayed for your staff to see and it may be worth including the findings within an employee’s handbook.
Finally, one common question that is asked is “Do I need business insurance if I run my business from my home?” The simple answer is YES and in most cases if you are not covered it can also impact your home insurance policy.
