• Home
  • Blog
    • Business Partner Magazine Archive
  • Free Contests and Giveaways
  • Resources
  • About Us
    • Cookie Policy
    • Disclosure Policy
    • Privacy Policy
    • Terms of Website Use
  • Contacts

Business Partner Magazine

Tips and advice for entrepreneurs, start-ups and SMEs

  • Business Success
  • Marketing
  • Finance
  • Employees
  • Technology
  • Start-up
  • Productivity
  • Communication

Revealed: 5 Reasons Why You Must Insure Your Business

February 7, 2020 by BPM Team

Click here to get this post in PDF

Too long to read? Enter your email to download this post as a PDF. We will also send you our best business tips every 2 weeks in our newsletter. You can unsubscribe anytime.

Enter your NameEnter your Email Address
person completing application for insurance policy

In the UK, there are around 5.7 million small and medium-sized businesses. SMEs don’t have the same resources as large firms and are less likely to recover from harmful weather and unfortunate events. Despite a lack of resources, underinsurance is common for owners of SME businesses — a survey by AXA revealed that over half of businesses are running without insurance! 75 per cent weren’t insured because their business was too small, while the other 25 per cent hadn’t considered it.

As risks come with owning a business, it is important that you are protected against potential dangers. Here, we take a look at five key reasons to insure your business and avoid out of pocket expenses.

1.      To protect your property

You can’t predict the future. It really would be excellent if we could anticipate a devastating flood or fire —but we can’t. Whether you work from home or commercial premises, the correct business insurance can provide you with the peace of mind that your property and its contents are protected against unexpected damage from specific perils.

If you don’t have insurance, your business could be seriously impacted by the repair and replacement costs along with loss of income if you cannot trade whilst repairs are being carried out. Of course, this is a far from ideal situation.

2.      To protect against potential legal action

It’s a legal requirement to provide a safe environment for your workers and customers. If anyone is injured or their property damaged due to your negligence, you could be presented with a huge liability claim.

If you operate a boarding kennel or cattery or run a dog walking business, you would need kennel insurance or dog groomers insurance to protect against liability claims against yourself or an employee. It could entirely damage your business and credibility in the long run by not investing in relevant insurance.

3.      It may be a contractual requirement

It may invalidate the contract if you don’t take out an insurance policy to protect yourself. There are a variety of reasons this may be necessary, including:

  • Contracts with clients may include a legal requirement to be insured in case things go wrong.
  • If you are borrowing money to pay for equipment and outsourced material, it is highly likely that this loan will include a requirement for insurance.
  • If you rent your business property from a landlord, you could need insurance for what your landlord doesn’t cover.

4.      To attract and retain hardworking employees

As you own your own business, it’s only natural that you want to hire the highest skilled employees possible. And of course, as an employee, they are going to go for the businesses that offer further benefits beyond their salary.

If you want to attract highly skilled employees, you need to entice them to want to work for you. This may include a range of additional benefits, such as life and health insurance. If you don’t offer these types of insurances, you could be shooting yourself in the foot by missing out on the best employees.

5.      It’s illegal not to!

Lastly and most importantly, it’s the law! As soon as you take on employees, you are legally required to have an Employer’s Liability insurance to provide cover if they suffer injury or illness as a result of working for you. Not doing so could open you up to lawsuits and a £2,500 non-compliance penalty for each day without it.  Additionally, if you run a business that requires a local authority licence, it may be a requirement that Public Liability insurance has been taken out.

If you own your own business and don’t have insurance, think of the risks you’re opening yourself up to. Stay safe and get insured.

You may also like: Every Business Needs the Right Insurance Cover

Sources

https://commonslibrary.parliament.uk/research-briefings/sn06152/

https://www.insurancebusinessmag.com/uk/news/sme/report-reveals-one-in-three-uk-micro-enterprises-uninsured-40582.aspx

Small business insurance: An essential guide

https://www.telegraph.co.uk/business/risk-insights/sme-insurance/

What insurance does a small business need?
Over half of new business owners trading without any kind of insurance cover

Filed Under: Insurance Tagged With: insurance

Trackbacks

  1. Benefits of Life Insurance in Perth, Western Australia - Business Partner Magazine says:
    February 26, 2020 at 9:13 am

    […] You may also like: Revealed: 5 Reasons Why You Must Insure Your Business […]

  • Facebook
  • Instagram
  • Pinterest
  • Twitter
  • YouTube

Disclosure

We earn commissions if you shop through the links on this page.

Recent Posts

  • Popular Custom Embroidery Ideas for Any Occasion Transforming Your Gift
  • Hologram Technology
  • The Benefits of Hiring a Global Construction Company for Your Project
  • Document Management System: All You Need to Know
  • Top Collaboration Tools for Small Businesses

Categories

Archives

Make Money Online – Free Course

  • Discover All The Shortcuts To Affiliate Marketing Success
  • Find Out How To Fill Your Site With New Leads And Customers
  • Discover How To Turn Your Passion Into Profits
  • Learn How To Write Copy That Gets Results Fast!
  • Discover How To Create Promote & Sell Your Own Products Online
  • Everything You Need To Know About Marketing Money Online
  • Strategies For Successful Web Entrepreneurs Inside
  • Discover How To Invest Smarter Grow Faster And Retire Rich
  • Email Marketing Strategies For Marketers And Entrepreneurs
  • Free training reveals how to build a successful six figure income online
  • Discover The Mindset Hacks You Need To Succeed
  • Free Marketing Memberships – Make Money Online

    Make money online free marketing memberships

    Tags

    Accounting apps bitcoin brand business growth business skills business success communication cryptocurrency Customer Service Data design Digital marketing ecommerce Efficiency employees Featured Article finance finances Health and Safety infographic insurance Investing investment legal legal tips Management Marketing marketing strategy Outsourcing productivity property Real estate sales security SEO Social Media software starting a business startup Technology Trading Training website workplace

    Disclosure

    We earn commissions if you shop through the links on this page.

    Digital Marketing Agency

    ReachMore Banner

    Business Partner Magazine

    Business Partner Magazine provides business tips for small business owners (SME). We are your business partner helping you on your road to business success.

    Have a look around the site to discover a wealth of business-focused content.

    Here’s to your business success!

    Copyright © 2023 - Business Partner Magazine·

    x
    x