By Bernadine Racoma
This post is sponsored by Hiscox.co.uk, a specialist insurer underwriting personal and business risks.
Many of us aspire to become business owners one day. Being the employer rather than an employee has many advantages and benefits after all. However, very few realise the sheer amount of responsibilities that come with the position, and those who pursue it oftentimes have to start small. At this stage, it’s vital to never leave any stone unturned especially those that are not just necessary for the business to succeed, but more importantly, to survive. One of these essential considerations is insurance.
For smaller businesses, it is absolutely essential to have the right insurance cover in place. It serves as a financial shock absorber for any undesirable and unforeseen events such as natural disasters and lawsuits. If you are a new business owner, here are a few things that you should not overlook in small business insurance.
1. Business Property Coverage
When looking to secure insurance services, it’s essential to make sure that you acquire property coverage as part of your policy. While larger enterprises or corporations may have larger budgets, smaller businesses working with limited budgets and finances can ill-afford high expenditure on potential replacements. For these smaller ventures, in the event that the equipment and tools needed to function are damaged or stolen, the impact could be devastating.
As the number of home-based enterprises grows, policies which are tailored to home businesses are becoming increasingly common. One insurer that has made efforts to provide cover for such ventures is Hiscox. They advise that business owners don’t necessarily need a specific home-based-policy as they can often get all the coverage they need through regular commercial property insurance. For more information on this, visit: https://www.hiscox.co.uk/business-insurance.
2. Liability Insurance
Lawsuits that stem from damage to property, or injuries, can be financially devastating to small businesses and companies To this end, liability insurance serves as a means of shielding the business from the risks of public or employee claims. It is so important for any business in any industry to have liability insurance before providing their services or entering into a contract.
3. Workers’ Compensation
As its name suggests, this insurance primarily serves to protect the employees of a business or company from liabilities that may result from an injury while on the job. Apart from medical bills and legal expenses, workers’ compensation insurance also helps in protecting the business owner or employer from being sued by employees that are injured while working.
4. Commercial Vehicle Insurance
For businesses that use vehicles, commercial vehicle coverage is essential. The coverage for this policy generally includes vehicles that are owned, leased or rented and protects you in the event that an accident happens.
It’s easy to get overwhelmed when starting a small business. Unlike larger companies that may be able to afford a few mishaps, a single mistake can be financially catastrophic for a small business that is working with no more than a modest budget. By investing time and resources into familiarising yourself with the mandatory insurance policies that your small business needs, you’ll allow your business to focus more on the work itself and prevent major financial losses from underinsurance.
It’s hugely important to do research and be discerning when looking for an insurance provider of course. Always review policies and coverage thoroughly, and don’t forget to compare rates as well. Not could the right choice save money and ensure you’re given the best advice, but taking the time to explore different options will give you the peace of mind that you’ve truly made the best decision for your business.