Nobody likes paying for insurance, and small business owners are no different. Often it can feel like you’re not getting anything for your money, especially where insurance is legally required. It’s just another thing you have to factor in to your expenses.
In reality, insurance should make you feel more secure; it’s there to protect you and your clients or customers when the worst happens. There’s nothing worse than something happening which you aren’t covered for. You wouldn’t drive on the roads without having your car insured, and business insurance is no different.
There are an infinite number of different circumstances which could negatively affect your business, and you can never predict what might happen. Some things are certainly more likely than others, and you have to ask yourself if saving money on a policy is worth the potential risk. There are countless stories of both small and large businesses that have been crippled by an event for which they did not have insurance; often because it was something obscure. Similarly, it is not uncommon for a disastrous event to be brushed off by a business because it has a completely watertight insurance policy.
Think of some of the following events which could potentially impact upon your business:
- Data loss
- Police cordons
Any of these could either damage your property and assets, or inhibit your trading; you can’t predict the impact they’ll have, so it’s better to be safe than sorry.
Of course, it’s not just yourself and the business that you need to look after. Customers and clients like to know that they’re protected too, and you need to be protected from their claims. Public liability insurance is therefore essential, and in many cases required.
Insurance as a Credential
As a small business, you might find that you need to deal with other businesses from time to time, some of which may be much larger. They will often have requirements and standards which they demand to work by, and insurance is frequently part of this. For this reason, insurance becomes a credential with which you can demonstrate your business acumen, and the solid foundation upon which your business is built.
With proper cover, those you are dealing with will understand that you have a practical and comprehensive approach to running the business, and that you highly value security.
Get Some Advice
The actual insurance you get will of course depend greatly on the industry you’re in, and how you operate. It’s probably a good idea to get some specific advice so that you can be sure that you’re covered from every angle. You don’t want to pay out a lot of money, only to find that you aren’t covered for something when it happens. It’s much easier to have a professional help you. www.towergateinsurance.co.uk is a good place to start; they are a broker who will help you to find the best cover by searching a panel of some of the world’s biggest and best insurers.