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. Without it, your business may face financial losses if:
- A customer sues you after getting hurt at your place of business.
- A fire destroys your building or inventory.
- A computer with your clients' personal information on it is stolen.
2. It protects your employees
One business insurance coverage that most states require is employers liability insurance.* If your employees suffer work-related injuries or illnesses, it provides protection for your employee and your business:
3. It protects your customers
Your business insurance can also help cover your customers if you have a Business insurance. 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 or compensation.
There is also Cyber Insurance otherwise known as data breach insurance to help protect your business and customers if a security breach occurs. This coverage can help pay for:
- Identity protection solutions
- Public relations
- Legal fees
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.
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
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 can help cover the owner, CEO or "key person" that runs your business from costly lawsuits. Management liability insurance can help protect those working for nonprofit organizations and publicly traded companies. In most cases, you can add this type of insurance to your policy.
8. A basic policy protects against disasters
- Accidental damage
- Malicious Damage
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 will 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
One question we're often asked is, "what insurance do I need for my business?" Our advisors help answer this every day. They can guide you through each of our insurance coverages and decide which property and casualty insurance policies fit your needs.