If you are hoping to set up your very own business in the near future, you will no doubt already have a very long checklist of things you need to get or do before launch day. But have you included insurance in that list? It’s important to get the necessary insurance for your new business to ensure that you aren’t stung too much if things don’t quite go to plan.
You might think that buying some insurance for your new business is going to be a piece of cake. But, in actual fact, it can be quite complex and confusing as there are a few different ones that you will need to get. Depending on the type of business you set up, and the industry in which it operates, you might also need some niche insurance cover.
Don’t have much time left to research insurance for your company? No problem; here are some of the most common that you probably will need to invest in.
Professional Liability Insurance
Professional liability insurance is often referred to as errors and omissions insurance but, no matter what it is called by your local insurance provider, it is important that you take out a cover for your business. This will protect you in case your company ever makes any serious mistakes in its work or fails to perform to a certain standard. In these situations, you might receive a claim of negligence, which could end up quite costly. When you take out some professional liability insurance, the insurance provider will write up a policy that is tailor made for your company to make sure that all types of possible mistakes and failures are covered.
Do you think your business will be able to cover all the costs and expenses that come with court cases and legal fees? The chances are that having to pay for these services will damage your company financially. But there is a way to stay afloat in the event that you are taken to court and need to pay for a lawyer and court cases. You just need to take out some legal insurance. You need to remember, though, that you need to have had the legal insurance policy for at least six months before it covers you. So, there’s no point taking out a policy if you know you have a court case to intend in a couple of months’ time – it’s too late!
Key Man Insurance
How do you expect your business will cope if something were to happen to you? Most companies wouldn’t be able to manage with the sudden loss of the owner, especially if they are the sole director. Thankfully, though, there is a way you can support your company now in case something ever happens to you. You can do that by taking out some key man insurance for yourself. If you are ever to die suddenly or leave the company for unexpected reasons, the business will be able to continue without you in the driving seat.
Do you have some work vehicles, such as cars and vans? If so, it’s a good idea to insure them. That way, they will be fully covered if they are ever involved in an accident or need any minor repairs or faults taking care of. Your company’s bank account won’t take too much of a hit when you need to pay for anything as the money will come from your insurance provider. Plus, this insurance also covers you for any damage that is caused to a third-party vehicle. So, if one of your drivers is ever in an accident that was their fault, your insurance will also pay out for any damage done to the other vehicles in the crash.
Do you rent out offices from which you run your company? If so, these should also be insured. That way, you are covered in the event of a burglary and theft. The insurance company will also cover you against any building damage from fires and floods. It is important to look for a property insurance policy that will also cover your contents. That way, you will be able to get money to cover any stolen items and equipment that you need to replace. If you work from home, it’s also necessary to look into home insurance that covers home-based businesses.
Once you have sufficient insurance, you don’t have to worry too much about any business emergencies – at least you are now covered!