10 Reasons for Business Insurance

1. It's required by law

UK law dictates it is required if you have more than one employee within a small business. However, even if yours doesn't, you shouldn't view it as an unnecessary expense.

2. It protects your employees

One business insurance coverage that can be a legal requirement is employers liability insurance.* If your employees suffer work-related injuries or illnesses, it protects your employee and your business

3. It protects your customers

Your business insurance can also help cover your customers. These policies combine business property and business liability coverage into one to help protect your business from:

  • Third-Party Property damage
  • Personal injury
  • Bodily injury
  • Product liability

For instance, if one of your customers slips, breaks their leg, and needs to go to the hospital, your insurance can help pay for their medical costs and compensation.

Cyber Insurance, otherwise known as data breach insurance, help protect your business and customers if a security breach occurs. This coverage can help pay for:

  • Identity protection solutions
  • Public relations
  • Legal fees
  • Liability

4. It builds credibility

Your business insurance does more than protect your business. Having the right policies shows your customers and contractors that you take managing risk seriously. It also helps communicate to everyone that you'll provide the right protection, no matter what accident occurs.

When going to tender for work in every industry, insurance proof is required and can be the failure or success of your tendering process.

5. Contracts may require business insurance

Businesses like yours make contracts all the time. So, it's important to be aware that many contracts require insurance protection. Some examples include:

  • Renting a building from your landlord
  • Borrowing money to finance goods
  • Loan agreements
  • Clients agreements
  • JCT contracts
  • Warranty requirements
  • Specific insurance requirements that may need specific mention in your policy wording, i.e., non-subrogation rights.

6. It can help recruit and retain employees

Employees look for more than just a salary as they search for jobs. They're also looking for the right benefits, like life and health insurance. Businesses without insurance often miss out on attracting and retaining the best employees.

7. It protects management

Your management liability insurance is also known as Directors & Officers Insurance (D&O). This can help cover the owner, CEO, or "key person" that runs your business from costly legal arbitration. Management liability insurance can help protect those working for not-for-profit organisations and publicly traded companies.

8. A basic policy protects against disasters

  • Flooding
  • Fires
  • Storm
  • Explosion
  • Accidental damage
  • Malicious Damage
  • Theft

This insurance is important for protecting your business' assets and the possessions inside it if a disaster strikes. You can also learn about our flood insurance to help protect your business from floodwater damage if an insurer does not cover it within your packaged or combined policy arrangement.

9. It helps with legal costs

Every company can get sued and face legal fees. One of the reasons you need business insurance is to help cover the costs. For example, if you have a property dispute this can help or even a contract dispute can be covered by this type of legal cover.

10. It offers peace of mind

We are often asked, "what insurance do I need for my business?" Our advisors help answer this every day. They can guide you through each insurance coverage and help you decide which property and casualty insurance policies are fit for your needs.

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