No business is too small to benefit from insurance. Insurance from a provider like hiscox protects businesses from potential risks, such as property damage, liability, and, in some cases, employee injury. There are many people who feel that insurance is an expense that they could go without; however, the truth is that insurance is an investment for the most unexpected events. Here are eight reasons why your business needs insurance.
1. Property Damage
Your business premises and the contents inside are some of your most valuable assets. If your property is damaged or destroyed, it can put a serious dent in your finances. Business insurance can help cover the cost of repairs or replacement. If your business property is damaged and you do not have the funds to have it repaired, it can disrupt operations and result in lost revenue. Property insurance will ensure that your claim is paid out as quickly as possible to ensure that your business is not adversely affected.
2. Income Loss
If you can’t work because you’re ill or injured, income protection insurance can help replace a portion of your lost earnings. This type of insurance is especially important for sole traders and people who work in high-risk occupations. Income protection insurance is a vital type of insurance that businesses should also offer to their employees as a company benefit. This is a benefit that individuals working in dangerous conditions could really benefit from in the event that they’re unable to work and earn an income.
3. Public Liability Claims
If someone sues your business, you could be facing a huge legal bill. Professional indemnity insurance can help cover the cost of legal fees and any damages you’re ordered to pay. Public liability insurance can also cover the cost of claims if someone is injured on your premises or if you damage their property. Liability insurance is essential for any business, no matter how big or small. For example, if you own a firearms business, it may be worth getting in touch with a gun store insurance company to put these policies in place.
4. Business Vehicle Accidents
If you use vehicles for your business, whether a car, van, or truck, you need to ensure they’re insured. Business vehicle insurance covers the cost of repairs or replacement if your vehicle is damaged in an accident. It also covers the cost of third-party property damage and injuries if you’re responsible for an accident. For example, if you have an Uber business driving people around, you should consider rideshare insurance to ensure that you and your drivers are protected in the event of an accident.
Businesses are often the target of theft, whether it’s from employees or external thieves. Business theft insurance can help cover the cost of repairs or replacement if your premises are broken into or if the equipment is stolen. If you have business contents insurance, it will also cover the cost of replacing any items that are stolen, such as computers, stock, or furniture.
6. Loss Of Data
If your computer systems are hacked or damaged, it can result in the loss of important data, which can be very costly to replace. Businesses should have data backup and recovery insurance to protect themselves in the event of a data loss. This type of insurance can help cover the cost of restoring lost data, as well as the cost of any business interruption that occurs as a result. Loss of data can seriously affect your business, so it’s important to make sure you’re protected.
7. Professional Errors
If you give professional advice or provide a service to clients, you could be held liable if something goes wrong. Professional indemnity insurance can help cover the cost of legal fees and damages if you’re sued for negligence or breach of contract. This type of insurance is essential for businesses that provide advice or services, such as accountants or consultants. It’s also a good idea to have this kind of insurance if a business is operating in cosmetics or body modifications of any sort with many providers offering specialised insurance specific to different industries, body piercing insurance springs to mind as one that should be considered if a business is offering this kind of work. Sometimes when working on a client an accident can happen and you want to be covered in this case. In any case though, human error is always a possibility, so it’s important to have this type of insurance in place to protect your business.
8. Product Liability Claims
If you manufacture or sell products, you could be held liable if they cause injury or damage. Product liability insurance can help cover the cost of legal fees and damages if you’re sued for negligence. This type of insurance is essential for businesses that manufacture or sell products such as food, cosmetics, and electrical goods. Additionally, if you import products, you should check that your insurer offers product liability cover for imported goods.
In conclusion, business insurance is a vital tool that all businesses should have in place to protect themselves from potential risks. While some types of insurance are not mandatory, they can provide peace of mind and financial protection when you need it most. To find out more about the different types of business insurance available, contact an insurance broker today!