Whether you are a new business just starting or are looking to see what alternative options are available on the market, choosing an insurance provider can be a time-consuming task. Despite this, having insurance for your business is a vital safety net that can protect you and your business should you ever need it.
For smaller businesses, not only do you face the hurdle of finding an insurance provider, but you also have to try and understand what the most efficient way is to spend your money to get a policy that provides the most protection to you and your employees.
However, business insurance is a requirement for anyone who owns or runs a business, no matter the size. One of the only exceptions to this regulation is for those who are sole traders and are willing to continue operating their business without insurance in place. If your business employs people or if you have to drive for business purposes, then you will have to get business insurance. If you’re looking to save money on car insurance, then a non-owner auto insurance quote is the best way to go.
As you begin the search for the right insurance provider, it is important to know exactly what type of insurance you are wanting to invest in.
Know What Insurance You Are After
There are various options available, but it is vital to find the right one to suit your business and your business’s needs. Take into consideration any potential risks that your business could encounter. This could be the possibility of a member of the public being sustaining an injury due to the work being carried out by your company. It could even be a disgruntled client seeking compensation due to the feeling you have been negligent in your services. Whatever the reason, having insurance in place to protect your business is essential, so you must find the right insurance policies in place.
These are some of the most common insurance policies that a majority of businesses choose.
- Employers Liability Cover – This is a legal requirement for the majority of businesses that have staff. It essentially covers any compensation claims that have been made by any member of staff who may have sustained an injury, illness or damage due to their work.
- Business Building Insurance – Obtaining business building insurance should be a priority for any business, regardless of whether it is a shop, office or pub, even if your business is conducted from home. However, if your business is conducted from a separate premise, such as an office, it is worth checking with the landlord of the building to see what is already covered.
- Business Contents Insurance – In addition to protecting the premises of your business, it is equally as important to cover the content inside the premises. These could be your tools and equipment, such as computer towers or monitors. Investing in business content insurance will cover the cost of replacements and repairs should you experience any damage or theft to any of your equipment and tools. It will also cover the cost of replacement if any items were to get lost.
- Business Interruption Insurance – Whilst nobody could have predicted the outcome of 2020, with businesses trialling out a new way of working, another disruption companies cannot predict are floods or fires. Having business interruption insurance will provide you with the financial cover needed so that you can get yourself and your business back on its feet. If a fire were to break out and damage your office, for example, business interruption insurance will cover the consequential loss of revenue – just as long as the items in the building have also been insured.
- Business Protection Insurance: There are 3 main types of business protection insurance: shareholder protection, keyman insurance and relevant life insurance. All of these insurance policies can protect either a shareholder, a vital team member or the business owner. If something happens, you know that your business machinery is covered.
- Employee Benefits: Protecting your business and core stakeholders is vital, but so too is supporting your employees. Policies such as group life insurance and private medical insurance will show your staff that you care and also help you to improve your recruitment and employee retention.
Look For Flexibility
When comparing the various options, take note of the range of options they have to offer. See if their policies have flexibility within them, which can allow you to alter them due to an unexpected disruption at your business. If there is a limited range, you might find yourself in a difficult position if there happens to be some change occur within your business.
Insurance experts such as Drewberry offer a vast selection of options, allowing you the ability to add coverage if you find yourselves in a position where your situation has changed. A glance at their website, drewberryinsurance.co.uk, and you can see the extensive range of options available. Finding insurance experts that can help with both business protection as well as employee benefits can be greatly beneficial for both you and your company.
Understand What Is Covered
Although looking to see if a policy is flexible will prove beneficial if you encounter an unexpected change, it is equally important to understand what exactly is included in a package. As you look through all of the policies available, consider what each one will cover. These are just a few of the most common elements and exclusions that will occur.
- Expected Or Intended Damages – Any damages that were either expected or intended by the insured are excluded. The insurance company must prove to the court that the insured party was thinking at the time when an item was damaged, which is a near-impossible challenge to complete.
- Data As Property – Seeking coverage for damages to another person’s property might only apply if the said property is substantial or capable of causing “physical” harm. It is a debatable concept to decide if computer data is tangible or holds the capabilities of causing “physical harm”. As such, if you operate in computer software or provide programming services, look to see what the policy you are looking to choose covers.
Benefits That Come With Insurance
As highlighted, having insurance will provide your business with a safety net if it were to ever encounter any issues. After spending months or even years to build your business into what it is today, why would you question the idea of putting insurance in place for possible disruptions? Regardless of the issue, any disruption that occurs will have an impact on your business and having insurance in place will help in minimising that disruption.
Each business is different and so insurance requirements will vary from company to company. When beginning the process of searching for an insurance provider, ensure that you have devoted enough time, as well as energy, to complete this task. This will help you in finding and investing in the right policies for your business that will best protect your company from potential risks that it may encounter in the years to come.
Whilst it may seem like you are spending money on a service that you will (hopefully) never have to use, knowing that your business is insured will prove peace of mind in case an incident were to occur. The overall value of business insurance should never be undervalued, and during your search for the right insurance provider, compare the policies to see what suits your needs. Take note of the best policies available to find the best quote and even speak to investment & insurance experts as you search for the right insurance provider for you and your business.
As an experienced business and finance writer I understand the corporate landscape and the driving forces behind it. Over the years I’ve shared my insight and knowledge with key industry publications and dedicated my time to showing how business leaders can make their organisations more effective.