Insurance is an individual matter. No two business insurance policies will ever be the same, with many variables affecting the total outcome financially. However, because insurance is not something that you can physically see, it stands to reason why many businesses new to the industry may question its relevance, doubting the need to part with their hard-earned cash to pay for this type of cover.
Without any uncertainty, insurance is one of the most crucial types of business expenses a company will incur each financial year. Having such cover in place not only protects your business, but it also offers protection to those who choose to deal with your business.
Peace of Mind
First and foremost, the act of insuring your business offers instant peace of mind. For those businesses who want to expand and take on further ventures, there will always be a small amount of risk involved. Through taking out insurance, particularly for those smaller of companies, businesses can approach such ventures without having to worry about risk, as insurance acts as their back up. This leaves a company free to concentrate on what they are good; making further profit!
For a huge number of businesses, it can be illegal not to take out some form of insurance. Companies have a responsibility to ensure they are adequality covered; whether it is for property cover or to cover their staff, employees and members of the public or visitors. It is very rare for any business to even begin operating without some type of policy, especially that of road insurance. Make sure you are doing everything by the book, because the risk of not covering your company could be the most damaging ever if something were to happen. Ask yourself, can you afford not to have insurance?
Satisfy Lender Requirements
It is a fact of life that all lenders will request you have some form of insurance, before you even begin to apply for purchasing or building rights. If your intensions are to extend and purchase further property, appropriate insurance cover is the only way lenders will agree to look at your proposals. Adequate insurance cover confirms to the lender that they are giving their money to a viable and insured business, who can show them proof of certification. Without it, it is almost futile to approach a lender of any kind.
Protection for Smaller Businesses
The bigger of companies can often afford to take risks to further increase their business size and wealth, as they are simply the bigger guys! Anything that happens because of a badly calculated risk, these types of companies simply brush it aside and carry on, unaffected. For the smaller of businesses though, they simply can’t afford to take a risk without some form of back-up plan.
When a smaller business takes out insurance, they cover their backs for the times when they do want to take a risk or two. This allows the smaller business to grow, ensuring its survival, meaning they too continue to run for longer, thus encouraging other smaller businesses to follow their lead.
Commerce Relies on Insurance
Though it isn’t the nicest of subjects to discuss, unfortunately we all live in a world where sadly the act of terrorism has almost become the norm in our everyday lives. Not a month seems to go by where some form of terrorist act doesn’t make the news.
Acts of terror can, and indeed do, affect businesses in the worst of ways. Ask yourself what would be the worst-case scenario if such an unthinkable act were to happen to your business. Would your business be able to cope financially and practically in the aftermath?
Does your insurance cover you from acts of terrorism? In many huge cases of attacks, it has been all because of insurance companies that businesses have been able to continue to function, thus keeping the commerce industry moving.
Insurance Supports Business Consistency
In business, as in life, things can, and indeed, do go wrong. Equipment breaks down, often at the worst times, and crucial work can be halted whilst the company looks to repair or replace it. With relevant insurance though, a business can claim for such equipment, alongside all its others, through its policy. Therefore, with a minimum amount of fuss, and no financial worries about how it can be replaced, your business can continue to trade and perform with a replacement product.
Insurance policies are there to act as an almost safety net when things do go wrong. Size up your company equipment and ask yourself how much you would stand to lose if the most vital of these items were to suddenly stop working. What would it cost you to replace them if you weren’t adequately covered? Would this even be a possibility?
Machinery and equipment is liable to break down at any time. Factor this wear and tear in when you devise your insurance cover, especially if your equipment is an older make and model.
Insurance Can Help the Wider Community
If your business is in the centre of a community, and these people rely on you to behave appropriately, safely and in their best interests, it is advisable to ensure you have an appropriate liability insurance cover in place. This means you are covered in the rare case of anything happening to the community, due to company fault.
If a community decide to act against your company, the cost can be substantial. Calculate the possible risk of this happening, before you take out your policy, and look at whether you would be covered in the case of all eventualities. In worst case scenarios such as this, claims of this nature could run to your suppliers, albeit unintentionally, damaging your company name. Is this a risk your business could ever afford to take?
Though some companies may luckily never even have to touch their insurance policy during their incorporation, nobody can predict the future. However, in terms of business they can almost certainly plan for a variety of possible outcomes, in a similar way as to how they would plan for future financial possibilities.
When such plans are backed up by a relevant insurance policy, a business can continue to do what it does best – make a profit. Therefore, get the policy cover out of the way first, and make sure that your company is covered in every aspect as it needs to be, to ensure a more productive and healthier company future.