The journey of building a business is typically characterised by many ups and downs, and while the fruits of your labour will almost certainly be worth all the hard work and consistency, you’ll have to face challenges and issues along the way that, if not managed effectively, could risk throwing you off track.
With this in mind, one of the best moves you can make as a budding entrepreneur in order to secure your business is implementing comprehensive business insurance – something that might seem like yet another inconvenient expense at first, but that is entirely necessary to ensure you can manage all the risks that your business may find itself facing in the future.
Insurance is a form of financial risk management that can help support business growth, prevent and control losses, and ultimately act as your saving grace when it comes to the inevitable bumps in the road you’ll encounter on the road to success.
Here, we take a closer look at what business insurance is, and the myriad reasons you should look into taking out adequate business insurance for your company sooner, rather than later.
What is business insurance?
Business Insurance is a type of insurance product that focuses on providing protection and risk control for business ventures. It works by transferring different business risks, aiding in fund accumulation, and maintaining fair premium rates. Business risks covered include uncontrollable damage, profit loss, and other perils outlined in the policy terms, so you’ll need to read yours carefully before signing on the dotted line to ensure your chosen policy is the right fit.
There are various types of business insurance available, which cater to diverse sectors and industries. Some of these may also cover business interruption, workers’ compensation, property insurance, and public liability insurance for legal protection, so keep in mind which areas of coverage are important to you so that you can ensure the policy ticks all the boxes to meet yours and your company’s needs.
Why does your business need insurance?
As an entrepreneur seeking to insure your business, generally, you will find two types of insurance protection offers available to you. The first covers life and health, while the second focuses solely on business protection.
Life and health insurance provides coverage for you and your employees in case of unforeseen circumstances as an entrepreneur, while insurance for your business will cover any business losses you might face as a result of fire, disaster, theft, riots, and a range of other potential causes.
Without insurance, every loss will be burdensome to you, as you’ll have to bear it all in its entirety – which could prove catastrophic for a new start-up or even a more mature business where the expense of resolving such issues is high.
However, with business insurance in place, the losses your company needs to bear will be much lighter, as your chosen insurer will compensate for losses that occur in business in line with your policy’s criteria.
What are the benefits of business insurance?
Still hesitant to insure your business and pay the extra cost? Here are some of the additional benefits that might change your mind.
Goods delivery guarantee
Business risks are ever present and can often be difficult to predict, but one of the most common problems product-based businesses can find themselves having to deal with, and that can prove disastrous, is in the shipping of goods. Whether you’re shipping directly to customers or awaiting the delivery of goods from manufacturers, there’s always a chance that things could go awry and that your products might not reach their final destination – or if they do, that their condition has been compromises by the time they arrive, and having business insurance in place will protect you from any resulting financial losses by paying out should the worst occur.
Indemnity
On the subject of risk and losses, these can occur in many other areas of your business too, and is another major reason that having a robust business insurance policy in place is essential. Indemnity insurance, which is included in most good quality policies, covers the cost of compensating clients for loss or damage as a result of negligent services or advice provided by your business or by you or any of your employees. It’s another welcome safety net that can provide peace of mind so that you don’t have to spend each day feeling like you’re walking on eggshells.
A solid foundation
Running a business can be fraught with risk, but starting one is also an exciting professional move that could change your life for the better. A comprehensive business insurance policy will provide you with the freedom to concentrate on the big stuff and the confidence to know that you’re protected should issues arise, serving as a solid foundation that will help to strengthen the business itself.
With business insurance in place, you can focus more on developing your business without having to worry about the potential financial risks. So is it worth the extra monthly expense? Absolutely – in fact, you’ll wonder why you didn’t take a policy out sooner and save yourself the stress.
To learn more about the benefits of business insurance for your company, consult a corporate services provider for guidance and to ensure you get the most out of your policy.
