Last year, I published Protect: You This post is about protecting your asset (your business)!
No company has zero operating risk, but existing risk will differ from industry to industry. There are therefore a variety of insurance required, some of which will be industry specific. Below however, are a few essential types insurance that all companies will need, as mandated by law or otherwise.
Employer’s Liability
This type of insurance covers medical treatments, death benefits, disabilities, injuries, and other potential work-related liabilities. It covers worker’s compensation claims.
It’ is a legal requirement in the U.K. for employer’s to hold this cover, so every business who employs staff should this in place.
Professional Liability
Not just service companies, practically every business needs protection against negligence claims. Professional liability insurance can protect against claims of harm or damage as a result of non-performance or mistakes.
As you may expect, your industry will have its own set of standards, concerns, and situations covered under this type of insurance.
Property Insurance
A property insurance policy can protect against a wide range of physical damage. It’s something that businesses need whether they lease or own the property.
Through property insurance, a company can also protect their physical assets like inventory and equipment.
Furthermore, it can protect a business from environmental damage such as floods, fires, and malicious offences such as theft.
Product Liability
Service-based businesses may not need this as much. However, companies that sell products can’t afford to do without product liability insurance.
This can help protect the business from damages caused by the use of its products. It’s a flexible type of insurance that can cover a specific product or a range or category of products.
Business Interruption
This is one of the most overlooked and undervalued insurance policies. It can cover a range of environmental or even catastrophic events that lead to a halt in operations.
Simply put, a business interruption insurance policy can help keep a business afloat when disaster strikes.
Having this insurance could compensate for lost income when you need it most. However, most companies covered by this insurance are those that have a physical location, like retail stores, for example.
Data Breach
Data breach insurance policies are rather new. But they can be invaluable for businesses that work with vast amounts of sensitive information.
Storing any non-public client and employee data makes a company liable for its security. The insurance could provide protection in the event of a hack or physical data breach occurs.
Conclusion
Worried about what might happen in the future? Business insurance acts as safety nets for any company. When unexpected situations arise, having insurance in place could be the difference between your business going bust and it continuing to be a going concern (especially for small companies where one lawsuit can be enough to call it a day)!
You may be able to take some of these out as a bundle which would be cheaper than taking out individual policies.
In addition to any industry specific insurance, consider taking out the above cover.
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