There are many types of insurance that the entrepreneur or start-up business should consider investing in. Protecting your business, your finances, and your reputation should be considered important factors even, or especially, during the early stages. While it is impossible to allow for every eventuality, insurance is meant as a means of attempting to do exactly that, and it enables you to assess and mitigate potential disaster.
You should already be aware of the legally required insurance that you need, and the specific policies that you are required to have will depend on the type of business that you run, and its organisation. For example, you will legally require insurance for any vehicle or vehicles, you may need business premises insurance, and public liability insurance is essential for some types of business. If you are setting up a business and incorporating with one or members of staff then you will need employer liability insurance from a company like Catlin, too.
If you fail to meet legal requirements for business insurance then not only could you find yourself faced with a substantial legal bill or other costs if the worst happens, but you could even face personal prosecution for not having ensured that your business meets its legal obligations.
Liability insurance can take a number of forms. If you offer advice or consultation services, then professional liability can cover any indemnity you are faced with, if your advice or services cause loss to one or more clients. Lawyers, architects, IT consultants, and even healthcare professionals can greatly benefit from this type of insurance.
If you meet customers face to face, whether at your place of work, at your home, or at their premises, then public liability insurance may be worth considering. If injury or loss is suffered by your client, and they can successfully argue that it was caused by your negligence, then they are likely to be able to claim damages and compensation from you. Without the appropriate liability coverage, this will have to come out of your own pocket, and could easily leave you bankrupt.
For a home based business, you should check existing insurance policies to determine whether you have existing cover. For example, your home and contents insurance may include some home-office coverage, but if you store stock or have expensive business based machinery or equipment, then this is less likely to be covered on your policy.
Insurance offers a viable and beneficial means of protecting your business interests, and could prevent you from having to cover losses and compensation for third parties. While you can’t prepare for every eventuality, your insurance policies can help you to recover following any disaster, accident, or incident.