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When starting up a new business, there are many different factors that needs to be considered. Finding premises, stocking products, hiring and training staff, and controlling your cash flow, are all things that a small business owner will have to be able to manage if they are to make their company a success.
There are, however other things which a business owner will also need to be aware of and implement. Some of these things may not be immediately apparent, which means they get overlooked during the process of starting a new business. Although they may not be at the forefront of your mind, they are no less important than all the other aspects of your new company. One of these things is business insurance.
What is Business Insurance?
Business insurance is a particular type of insurance product which is specifically designed to meet the needs of business owners. It includes provisions for particular types of incidents which would not need to be covered elsewhere, such as business interruption, loss of income and employers’ liability cover. If you’re a business owner who has not yet made provisions for your insurance needs, you may wish to consider the benefits of business insurance solutions from Towergate.
Is Business Insurance a Requirement?
Under UK law, the only insurance which a business is legally obligated to have from the outset is that which covers against risks to third parties – i.e. your customers. Once you take on at least one employee you are legally required to have Employers Liability insurance. There are other types of business insurance that are not required by law, however, it is advisable that you invest in comprehensive business insurance, for a variety of reasons.
Reasons for Buying Business Insurance
The best reason to purchase comprehensive insurance for your business is to ensure that you don’t incur substantial financial losses in the event of something unforeseen happening. This might be damage to your business premises, accidental damage to stock, robbery, or in the event of your being sued by a customer or client. Insurance can protect you against losses in all of these situations and, whilst nobody ever really expects the worse to happen, having insurance will make sure you’re prepared in case it does.
How to Find the Best Business Insurance for You
Because every business’ needs are different, finding the right insurance means you will need to thoroughly assess your circumstances before purchasing protection. This is to make sure that you are covered to the fullest extent that you need to be, and also to make sure you’re not paying out for policies you don’t require.
If you’re confused about what kind of cover you need, it’s always best to speak to an experienced advisor. They will be able to explain exactly how each insurance product works, and what your legal obligations are with regards to business insurance.
Yep, you can try to figure out what works best for your employees on your own. But you shouldn’t. The rules that govern health insurance are complex, the options are many, and it may be confusing.
The Bureau of Labour Statistics indicates small businesses struggle with providing insurance for their employees. According to the Bureau, 88% of employers with more than 500 employees offer insurance against 55% of employers with less than 100 employees.