What types of business insurance do I need?
Keeping a business safe and secure is an on going process. From ensuring that it is financially viable and attracting new customers to protecting it from unpredictable economic conditions and volatile markets, small business owners have to work continuously to prevent their companies being negatively effected by outside influences.
However, it’s impossible to predict the future and the best way for a business to really protect itself is to invest in a range of high quality, comprehensive insurance policies. Though the exact types of business insurance a company needs will vary from sector to sector, there are a variety of policies that every business should have.
Tax investigation insurance
If you’re a small business owner, there’s a good chance that, sooner or later, you’ll be audited by HMRC. Occasionally, Her Majesty’s Revenue and Customs decide to perform an in depth investigation in to all areas of a business’ tax affairs, something that can be costly and time consuming to resolve.
Tax investigation insurance is designed to remove the financial burden of a tax enquiry. As long as there isn’t currently an open investigation, you should be able to buy tax investigation insurance to protect you for the future.
Key man insurance
Key man insurance is simply life insurance on the key person in a business. Generally, this is the founder or owner but can it include any employees who are especially valuable to the daily running of the company.
Without key man insurance, companies that rely heavily on a single person can quickly collapse if something happens to that person. If they do have a policy, small businesses will have a financial cushion to get them through the difficult period and recover from the loss of the key man.
Professional indemnity insurance
Professional indemnity insurance helps to protect a business if claims are brought against it by a client due to the work they have done for that client.
Companies need professional indemnity insurance if they provide advice to clients, handle data belonging to clients or if they are responsible for a client’s intellectual property.
A lot of insurers offer a range of industry specific policies, allowing companies to find a policy that suits their needs perfectly.
Public liability Insurance
Public liability insurance is designed to cover your business in the event of third party claims being made against you for negligence that has caused a person or persons to suffer injury or illness. Some public liability insurance policies can also provide cover in the event of damage to a third party’s property.
Public liability insurance is essential if your business operates in outside areas or in close contact with members of the public. Events companies, shops, entertainers, adventure sports operators and any other business that works with the public should invest in a policy to protect them in case something goes wrong.
Though they can seem like an unnecessary expense at the time, insurance policies can prevent your company from going under in difficult times. Investing in a few relevant policies now could help you to ride out the biggest challenges of your professional career and help your company to thrive.
Source: Business Ideas UK