When you set up a business, certain risks are unavoidable. Everyday risks, including stock or premises damage, mistakes, and accidents, could quickly turn into something serious and detrimental to you, your colleagues, or your company.
However, there are several proactive steps and policies that you can take to reduce the risks. With the right measures in place, you can feel confident that you and your employees are protected – and that if things go wrong, you can get back on your feet quickly.
What happens if you don’t take out business insurance?
Going without the appropriate insurance policy for your business could have extremely detrimental effects. Certain types of business insurance are compulsory by law, while others are optional. But when you’re not covered, you’ll be responsible for an immediate loss of income in the event of an unexpected situation.
Which business insurance is compulsory?
The types of business insurance required by law include:
- Employers’ liability insurance for all employers, to cover compensation costs for employees who become injured or ill through their work
- Commercial motor insurance for any business using vehicles
- Professional indemnity insurance for professionals
Certain business insurance policies are optional. Some examples might include:
- Commercial property insurance, which covers renovations or repairs to business premises, plus stock replacement
- Liability insurance, which covers the cost of making a compensation claim following complaints or negligence claims
- Cyber insurance, which covers loss of information to or from networks and IT systems
Commercial insurance in action: Practical example
Commercial insurance is invaluable in a range of corporate settings, but it’s absolutely imperative for certain high-risk industries. Any businesses using heavy vehicles are more vulnerable to circumstances that could increase the likelihood of a claim or complaint being made against your business.
Accidents involving moving vehicles are some of the most common, accounting for at least 10% of all non-fatal injuries to employees. With transport insurance in place, the business might not incur costs as high as the compensation given.
If you work in the transport industry, looking for a transport insurance policy that could protect your business and fleet to protect against any unprecedented accidents which may arise.
What else can I do to protect my business?
Insurance should be second-nature, but you can take steps to reduce the likelihood of serious events occurring within your business. For example, in any business with heavy equipment or machinery, supplying your employees with the correct type of personal protective equipment is imperative.
Secondly, keeping your important documents and administrative processes as organised as possible could help you during challenging times. If one of your employees has an accident and decides to make a claim, having easy access to your policies and agreements will make the process more efficient and less stressful.
If you have any concerns about the livelihood of your business following a stressful or damaging event, do not hesitate to contact your insurer or local authority to receive professional advice.
