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Why business insurance is important!

About

No one likes to have to pay insurance! Its a legal must for many. It is a cost that we don’t see the value in until we need it and its always a chore to get set up.

See No Bounds hooked up with resident insurance professional Fiona Evans of Severn Bay Corporate Solutions Limited to find out a few facts. When is business insurance required? Why business insurance is important? And Which business insurance do I need?

Fiona Evans

Fiona Evans

Commercial Account Executive
Severn Bay Corporate Solutions Limited

When is business insurance required?

To ensure that your business is protected, try to start your insurance on or before the day you begin officially trading; this should ensures that any insurable incident that arises is suitably covered!

There are many covers you made need but the core sections are Public Liability, Employer’s Liability (which is a legal requirement), business interruption, contents and potentially Professional Indemnity if you’re in an industry that does inspection, testing or gives advice.

There are so many events that can arise within your business and making sure you’re insured properly can assist in these events so, it’s always best to use an insurance professional. They can advise on every cover you would need; you may not proceed to take all of these covers but at least they were considered and made aware to you. Using a broker should ensure that you’re covered correctly with a reputable insurer that will be reliable in the event of an accepted claim.

Why business insurance is important

Insurance is designed to put you back in the position you were before the event of a claim and dependant on the size and nature of the claim, this could be the difference between the continuation of the business and the closure of your business

Business insurance can cover anything as small as a mobile phone to the liability of your staff, it can cover legal expenses, vehicular breakdown, stock, tools, money, goods in transit – the list goes on and on! And although you may be confident that a claim may not arise, you never know!

Risk Management is the key – proactive risk management is the most effective way to reduce your premiums – this not only includes the things covered by your insurance, but also by taking a good look at all the things that could affect your business and producing an effective Business Continuity Plan, you are decreasing the risks to your business.

When considering your business, think of every aspect of your trading and make a list; you can then find a policy (or policies) to cover these and if you’re not sure, you can always speak with a broker who can advise you.

Which business insurance do I need?

It entirely depends on the activities of your business because the covers available can vary so widely.

However, if you’d like to start somewhere, Employer’s Liability is a legal requirement under the Compulsory Insurance Act of 1969, so always make sure you have that! Then, to ensure that your liability to the public (and their property) is covered, make certain that you have public liability too. Don’t forget Professional Indemnity if you are testing, inspecting or giving advice on anything and products liability if you sell physical items!

After your liabilities, you want to consider the assets of the business such as your vehicles, the stock, your tools or your office contents; there are policies you can put all of this onto and have it in one place.

But my best advice is to schedule a meeting with a broker who can go through everything you do and advise on everything you need. It may appear cheaper to go direct to an insurer and arrange the cover yourself however, all you may end up with is an expensive piece of paper that doesn’t mean much when it comes to making a claim.

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