It is hard to imagine circumstances in which a business should not take out some form of insurance. The issue is really what sort of insurance policy is needed by the business. Insurance can be a significant cost for just about any business so it is important to establish exactly the kind of insurance required. This will obviously depend on the type of business.
If you are unsure about the types of insurance needed then a good place to start will be either your bank or a local broker. A chat with a small business advisor at your local branch will give you some good background. You will be under no obligation to purchase any products. Also, there are some useful resources on the internet and perhaps the best place to start is the Association of British Insurers.
The types of business and related insurance products are far to numerous to outline here, suffice to say you are almost certain to need some kind of insurance and almost certainly some kind of liability insurance. We will take a look at the most common types of insurance.
Liability insurance is needed to protect your business should any damage be caused to another party or their property, which is the fault of your business and its employee or its products. This could be a member of the public, another company or an employee. Obviously you do not expect this to happen, but it is not possible to guarantee it. The liability insurance will safeguard your business should the worst happen.
Professional Indemnity Insurance will cover an individual against claims made by a client as a result of professional negligence.
Some businesses will require specialist insurance. For example there are policies available specifically for electricians and plumbers. Most types of business will have professional organisations who can point you in the right direction.
There are two choices for obtaining insurance either offline or online. Online insurance tends to be cheaper and banks and insurance companies are keen to promote online insurance as it is cheaper for them to administer and some of these savings are passed on. However, one of the downsides is the loss of the personal touch and the chance to discuss options with trained specialists. However, banks and brokers are still keen to talk to prospective customers so don't be put off by visiting your local bank and talking to the small business advisors. You will be under no obligation, so take advantage of these free services.
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.
The articles on this site are for general information purposes only and should not be construed as advice under the Financial Services and Markets Act 2000. We strongly advise that you take appropriate professional and legal advice before entering into any binding contracts.