When you have a successful business that is running smoothly, it can be difficult to imagine it going downhill. However, whilst everything is running smoothly, it is the best time to futureproof your business by investing in insurance that is relevant to your industry and needs. This should be a key part of your financial planning, as if you do not have any insurance for your business and something drastic happens, it can result in some extremely expensive payouts.
The investment is extremely small compared to the damage it can cost, so it is essential to understand the insurance that you may need for your business. In this article, we will go through five types of insurance your business might need.
Professional Indemnity Insurance
Professional indemnity insurance is there to cover compensation costs for clients who have suffered a loss or damage from poor working standards or negligent work. This could range from giving the wrong advice that causes loss to breach confidentiality or not adhering to a professional code of conduct.
Any one of these circumstances can result in a large claim from your clients, having protection against this can seriously help you to future-proof your business. Although you may have complete trust in your and your employee’s abilities, everyone makes mistakes which makes protecting your business for the eventuality crucial.
Key Person Insurance
One type of insurance that many organisations will need is key person insurance. This is for essential people within the business and if they get seriously ill or pass away, the business would be crippled and possibly become insolvent shortly after. The types of people this is for are directors, founders and owners of a business. It helps when one of the people falls ill where they can’t work or if they have died, you will have enough cover to take action and allow your business to keep its head above water. This is an extremely useful tool for those who own small businesses.
Trade Credit Insurance
If your company deals on a credit basis, trade credit insurance is essential and can act as an extra lifeline. An example of this would be for a business that provides a product or service and then payment is taken at a later date. For this instance, you will need trade credit insurance. Sometimes the people you are trading with can not pay their bills or they may have become insolvent. If this is the case, if you have the right cover, credit insurance will cover the losses.
Having trade credit insurance helps you to expand your business safely and make more trade deals with confidence. This is a great tool as it ensures that if a trade is unsuccessful, you are covered and you will receive the money back. This is especially the case when it comes to international trade, as it can often be very risky when you don’t have the right kind of cover to protect you if anything were to go wrong. This is exactly what credit insurance protects you against. If you are interested in this, speaking to a credit insurance broker will be able to help with any questions you have. Brokers are really important, particularly for credit insurance, as making a claim can often be very time consuming and difficult, which can be fully managed on your behalf by a broker.
Equipment Breakdown Insurance
Equipment breakdown insurance is essential for many businesses if you have tools, equipment or machinery that you need to do your business. This covers any sort of equipment you rely on and as a result, if broken, you lose money.
One example of this would be a production line, if the line belt breaks, you will not be able to carry on the process until the belt is finished. Once this is done, it can take a day or two and we all know time is money.
Cyber insurance is extremely useful if you deal with sensitive information or private keys etc. This insurance helps to protect you from any data breaches containing private information such as credit card details, NHS number, national insurance number, passport information and much more.
Cyber insurance also covers a range of other internet risks pending on what your policy covers. Unfortunately, hackers are much more advanced these days making it impossible to completely block any hacker attempts. If you have customer data stored, it is certainly worth getting cyber insurance. Cyber attacks continue to get more and more complex, hard to spot and challenging in general, so you need to have the right kind of insurance, as well as cyber security cover, and training for your staff, to give your business the best chance of staying protected against these horrendous attacks that can, in some cases, be catastrophic for a business.
Employers’ Liability Insurance
If you hire staff, then you have an extra responsibility on your hands. You are legally required to have some sort of employer’s liability insurance policy. The cover compensates for a claim made by an employee who has suffered from injury or damage from their job. There are some businesses that are exempt from this such as businesses that only hire family members.
Public Liability Insurance
If you come into contact with members of the public in any type of space, public liability insurance is definitely a consideration. This type of policy helps to protect you from any claims for damage and injury made by customers, clients, suppliers and any other third party. Businesses such as tradesmen, hairdressers, and beauty salons all take out this type of insurance policy. If you are unsure whether you need it, just think about who you deal with on a daily basis.
There is an abundance of insurance policies available, but if you are unsure, it isn’t too hard to find the insurance you need for your business online. Insurance covers your back, so it is an essential part of your business. If you would like help in finding the best credit insurance policy a broker can certainly help.
Getting the right cover for your business is absolutely essential, so we would always recommend using a broker who specialises in business insurance to make sure you are as protected as you need to be. Every business is vastly different, and so is the insurance that you need to help future proof your business, so take your time and be prepared to invest and your business will thank you for it in the future!