The first year of a new business can seem like a whirlwind. With so much to think about it’s easy for insurance to take a back seat to the demands from suppliers and customers, marketing your new business and dealing with the taxman.
Sorting out your business insurance though needn’t be a struggle, you just need to think about a few things to make sure you choose the right insurance for you.
The kind of business you’ve set up affects the kind of insurance you should get. If you are working from home for example you probably use laptops and smartphones that will need insurance that covers them when you take them away from home. Think about what your business does on a daily basis.
The balance of risk is the foundation on which all insurance decisions are made. It’s important that you understand the risks your business faces. Risk doesn’t just mean danger to people’s health and safety (although that is an important part) you need to think about the risks that your business is exposed to in a wider sense. Think about what might happen to you if a supplier goes bust or you lose your stock in a fire. Consider all the events outside your control that could have a serious effect on your ability to trade and make sure you get the business insurance cover you need.
It’s a cliché to say that having your health is the most important thing in life, but the basic health of your business is of primary importance. Make sure you have the right cover for the risks you and your employees face and you have the cover you need to keep your business running should you or any employees become ill. Also you need to insure the equipment you rely on to work on a daily basis. With these two things covered you can keep you and your business healthy.
Professional indemnity insurance is a less understood area of business insurance. This type of insurance covers you against compensation claims that come about following an error in your work. You are not legally required to take out this insurance but it can be helpful if your work involves consulting for clients. Even if you have done nothing wrong, professional indemnity insurance can help you cover the costs of legally defending your work and reputation.
Your reputation with your customers, suppliers and the wider community cannot be underestimated. A hard won reputation can be tarnished by a single event and you will need to think about the cost that might be involved in protecting your reputation. This may involve professional indemnity insurance as mentioned above but you also need to cover yourself against other claims too.
NatWest business insurance experts are at the end of a phone call to help you get the insurance your business needs.