The Importance of Business Insurance
As responsible accountants, we go above and beyond to help our clients to stay in control of their finances. Usually this is a case of managing bookkeeping, payroll, tax returns and management accounts on their behalf, but we also offer practical advice designed around making savings and avoiding unnecessary expenditure. When it comes to the latter, having suitable business insurance in place guarantees that you’re protected should something unfortunate take place.
Below are a few reasons why business insurance is so important and how it can make a vital difference to how you run your company.
It’s a legal obligation
If you have employees, or even just the one that’s working for you on a temporary basis, you need some form of employers’ liability insurance. If you fail to have this in place, you could potentially face a fine of up to £2,500 a day until the correct cover is taken out. This type of insurance safeguards you against compensation claims made by an employee on the grounds of illness, injury or damage as a result of their role at your company.
Meanwhile, if your business is in regular contact with members of the public, you need public liability insurance for similar reasons.
Nobody wants to get sued
Aside from compensation claims, there are other circumstances where someone could sue your business. It could be a case of breach of contract, libel, copyright infringement or any of a number of reasons, none of which are particularly pleasant. By having insurance in place, you minimise the impact inflicted on your company.
You can’t trust the weather
Britain may not have the most dramatic weather but it does throw us a few surprises from time to time, from flash floods and gale-force winds, to fires caused by lightning storms. All it takes is for the elements to enter the premises and you can say goodbye to furniture, carpets, paperwork and electrical equipment, as well as your base of operations.
If you take out the right kind of business insurance, you’ll be covered against these unwelcome but often inevitable Acts of God.
Poor health can take its toll
If you or another company director were to be taken ill, succumb to a major injury or pass away, what would happen to company shares and the future of the business? Key person insurance is specifically designed around keeping companies running as
originally intended, even if their founders and top management are taken out of the picture.
It’s good for your brand image
Your business will benefit from a stronger and more credible reputation if it has relevant insurance in place, as it reflects your understanding that the security is well worth the financial outlay. People want to work with companies that take their business seriously, so investing in the right kind of insurance is an excellent move for your brand.
We can refer you
We work with multiple business insurance providers across the UK that are reputable, dependable and ready to share their wisdom. If you’d like us to refer you to one of them, get in touch on 01482 235575.
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