How business insurance can save your company money
For a small business, you will always want to find ways to save costs but it is important to understand that sometimes you need to spend in order to save in the long run. Business insurance is perhaps the best example of this and something that small and growing companies should not risk going without.
Types of insurance
There are many different types of business insurance to learn about and the types that you need will depend on the type of business that you run. A few of the main types that most small businesses need include:
Employers’ liability insurance (a legal requirement): covers legal and compensation costs if an employee suffers an injury or illness as a result of working for you.
Public liability insurance: covers you for claims made against you by the public, such as an accident suffered on your premises or property damage caused by an employee.
Professional indemnity insurance: Covers against any mistakes made by your business or if a client has financial loss as a result of your work.
Contents & portable equipment insurance: Protection against damage to business contents and portable equipment in the event of fire, theft or damage.
Cyber liability insurance: Cover for data breaches and cyber attacks along with legal claims, compensation costs and fines. Cybercrime is on the rise so this is an important type to consider.
How insurance can save you money
The above are a few of the main types of policies that a business should consider and there are others that you may need too. While this might simply look like a lot of money to spend on cover for outcomes that might never happen, you will find that insurance usually saves money in the long run. This is because an issue like an employer suffering an injury at work or a cyberattack could cost your business a fortune without insurance in place and many small businesses would struggle to afford this.
Better to be safe
It is better to be safe than sorry when it comes to insurance and particularly when it is to do with business. Over the course of your company’s history, the chances are high that an issue will arise at some point and usually it will be cheaper to pay for many years of insurance than to cover the costs out of your own pocket. Not only this, but having cover in place will provide peace of mind and this is something that you can’t put a price on.
Reducing insurance costs
While insurance will always be a cost and you should never try to cut corners, you will find that there are ways to keep the costs down. The best way to do this is simply to shop around and use comparison websites, but just be sure that you are getting sufficient cover. You may also be able to consolidate insurance policies, increase your deductible or pay your annual premium in one lump sum.
It is important not to view business insurance as another expense as it is essential for protecting your business and often ends up saving you in the long run, but you can also look for ways to lower your insurance costs too.