Business insurance is easily forgotten by many. Sometimes this is done accidently or more often, ignored on purpose to save money. It can very much an afterthought or a luxury that they just can’t afford. However, to miss out on such a vital business requirement can be the downfall of a business, particularly a start-up where a single lawsuit could destroy a great enterprise. But this blog post focuses on how having the right insurance and protection in place is something that should be at the forefront of every business’ attention, no matter how big or small.
No matter what business sector, it’s important for every company to consider the cost of insurance so it can be included in the budget. Depending on your business, the price of insurance will vary. But, regardless, this is an important step and one that should be considered at the start of a business venture, not at the end. Because without an insurance policy, you are without protection.
Protection from Catastrophic Loss
Catastrophic loss such as a fire, or a natural disaster such as a flood could end your business within moments. Areas like San Francisco experience earthquakes and these kinds of events can have big impacts on a business. If your stock or equipment is destroyed in an unexpected incident, you could lose all of your assets in a matter of minutes and there’s no way of recovering it. Modern businesses rely on lots of things. Even a local SME may in fact import products from another country and this kind of supply chain can be affected and thus impact your business. To make sure you are fully protected, consider building insurance and also business interruption insurance to ensure that you do not face cashflow problems.
Protection Against General Liability Issues
General liability insurance is essential, particularly if you have paying customers visiting a shop or place. If a visitor slips in your shop, or if a supplier suffers an injury on your business premises, the consequences could be extremely damaging. Even if you don’t think you were at fault, not being covered is risky and could lead to big problems. Or if your product causes accidental injury to a customer, this could be a disastrous termination to your product line – or even worse, your entire business. We expect this kind of support and cover from larger companies, however, being a small business is not an excuse. General liability insurance will cover any accidents within your business premises, within any business vehicles or with any products manufactured/sold by the company.
Protection from Claims of Negligence
Claims of negligence are quite common these days. The US health industry sees millions of lawsuits every year based on this kind of expectation. Whether you run a business which provides a business service, or you’re customer-facing and provide your expertise to the end consumer, professional indemnity service should be in place to protect you should there ever be any claims made against you. You can get very specific insurance depending on your business so shop around and see what you can find. Clients can make a claim against you if they feel you have provided them with the wrong advice or service so be ready.