Not taking out business insurance may seem like an easy way to save money, but in fact failing to get suitable cover can end up costing you big in the long term. Without the right protection in place, your firm’s finances may be placed in jeopardy and you risk running up potentially insurmountable debts. So that you know which policies are most important, take a look at this brief introduction to business insurance.
Cover you are required to have by law
There are certain types of cover that you are legally obliged to have, and if you’re found to lack these policies, you could face costly and damaging legal action. For example, if you employ members of staff, you will need to take out suitable employers’ liability insurance. As it states on the website www.chill.ie, this protects you if your staff members make a claim for injuries or illnesses they suffer as a result of performing their roles. Meanwhile, if your business uses vehicles, you are also legally obliged to take out appropriate motor insurance. At the bare minimum, this must be third-party cover.
Policies that are not compulsory but could still be crucial
As well as mandatory policies like these, your business may benefit from taking out a range of other insurance products. For example, you might want to take out public liability cover. This protects you if a member of the public sues you over death, injury or property damage that occurs as a result of the negligence of your workers. If you’re involved in providing goods to customers, it’s also worth considering product liability policies, which pay out if you’re subject to compensation claims by people who are injured or whose property is damaged thanks to a fault in a product you supply, manufacturer or design. On the other hand, if you operate in a professional capacity and provide advice to people, for example, as a lawyer, accountant or architect, it could make sense to pay for professional indemnity cover. This protects you if a client seeks a payout because your professional advice has caused them financial loss.
In addition, in case anything happens to your property, such as your premises are flooded or your goods are stolen, it’s important to take out suitable buildings and contents insurance.
If you’re not sure, ask
Because there are so many business insurance policies out there, it can be hard to know which ones your company really needs. If you’re ever unsure which products to go for, it’s a good idea to seek expert advice. Shelling out for cover you don’t need can place your finances under unnecessary strain, but failing to take out policies you do require could put your firm’s finances in peril.