As a business-owner, there are numerous threats and risks that can undermine the validity of your venture. It’s imperative that you protect against these, with insurance products helping to safeguard your business in a diverse range of circumstances.
For example, recent statistics have revealed a 41% rise in work-related injury claims over the course of the last five years, highlighting the need for firms to invest in employers’ liability cover as a way of protecting their interests (and those of their staff).
In this post, we’ll look at the other insurance products that are crucial to your business, and ask how they help to safeguard it’s future.
1. Public Liability Insurance and Professional Indemnity Insurance
We start with two distinct products, which despite their core similarities serve very different purposes for business-owners.
In the case of public liability insurance, this product covers your business against material damage or injury claims that a member of the public levies against you or an employee. In this respect, it’s ideal for retail outlets and customer-facing businesses, particularly those that regularly welcome consumers into their outlets.
Now, while professional indemnity insurance works in a similar manner, it has been designed to protect businesses in instances where a third party is adversely affected by an administrative error of negligent advice.
This type of insurance product offers huge value in the service sector, and especially litigious environments such as legal offices or financial trading platforms.
2. Property Insurance
Regardless of whether your business owns or leases its workspace, property insurance should be considered as a must.
This product usually offers a high value and diverse range of cover, including on-site equipment, inventory and furniture along with the property itself. Most importantly, it pays out in the event of a fire, storm or theft, helping you to make any necessary repairs quickly and without incurring significant delays.
However, it’s important to note that so-called ‘acts of God’ and destructive events such as floods and earthquakes are not usually covered as part of a standard property insurance policy.
So, if your business property is located in a region that may be at risk of flooding, it may be worth investing in this as an optional extra.
3. Business Interruption Insurance
Of course, in instances where catastrophic events do occur, businesses face the considerable challenge of funding the necessary repairs while also continuing daily operations.
This can cause significant and sustained interruption to your venture, which may also result in lost income and the eventual collapse of the business.
This is where business interruption insurance comes into play, however, as this will compensate for a percentage of any lost income during this time and create a financial contingency that enables the venture to continue trading.
This type of insurance is only really relevant to businesses that require a physical location to trade, such as supermarkets and retail outlets. You may also refrain from investing in this if your business is located in a central location, but this could be a false economy given the damage that can be imparted by fire and storms.
Sources: simplybusiness.co.uk / ajginternational.com