All companies need to have business insurance policies in place to protect them from a range of different risks. Insurance is especially important for small businesses which don't have very much money, as these will have to cover the costs of lawsuits and compensation cases out of their own pockets unless they have the right insurance.
In order for you to realise just how important insurance is for your business, let's look at what can happen without it. Try to imagine what your company would do in each worst-case scenario without the protection of business insurance.
In order for you to realise just how important insurance is for your business, let's look at what can happen without it. Try to imagine what your company would do in each worst-case scenario without the protection of business insurance.
It could very easily happen that someone who works for you should suffer an accident whilst at work. The employee could fall and sustain an injury, and they could then go on to pursue you for compensation to cover their medical expenses and loss of earnings. You could be facing a compensation bill of thousands of pounds if it is ruled that you could have done more to prevent the accident and are liable for the incident. Unless you have employers' liability insurance, paying this compensation is your own responsibility.
On occasion, products sold by a company are found to be defective. If one of your products actually injures a customer or damages their property (i.e. starting a fire), you could liable to pay that customer thousands in compensation. Don't have product liability insurance? You will be paying this compensation yourself.
Your business could also be sued for providing a bad service, or for giving bad advice which leads to a customer losing money. The compensation in these kinds of cases can run into the millions of pounds, which you will have to pay unless you have professional indemnity cover.
If you don't know what insurance policies your business needs, it is recommended that you go and speak to a business insurance expert
On occasion, products sold by a company are found to be defective. If one of your products actually injures a customer or damages their property (i.e. starting a fire), you could liable to pay that customer thousands in compensation. Don't have product liability insurance? You will be paying this compensation yourself.
Your business could also be sued for providing a bad service, or for giving bad advice which leads to a customer losing money. The compensation in these kinds of cases can run into the millions of pounds, which you will have to pay unless you have professional indemnity cover.
If you don't know what insurance policies your business needs, it is recommended that you go and speak to a business insurance expert
On occasion, products sold by a company are found to be defective. If one of your products actually injures a customer or damages their property (i.e. starting a fire), you could liable to pay that customer thousands in compensation. Don't have product liability insurance? You will be paying this compensation yourself.
Your business could also be sued for providing a bad service, or for giving bad advice which leads to a customer losing money. The compensation in these kinds of cases can run into the millions of pounds, which you will have to pay unless you have professional indemnity cover.
If you don't know what insurance policies your business needs, it is recommended that you go and speak to a business insurance expert right away. It may be an expensive mistake to make if you don't.
About the Author:
Your business could also be sued for providing a bad service, or for giving bad advice which leads to a customer losing money. The compensation in these kinds of cases can run into the millions of pounds, which you will have to pay unless you have professional indemnity cover.
If you don't know what insurance policies your business needs, it is recommended that you go and speak to a business insurance expert right away. It may be an expensive mistake to make if you don't.
About the Author:
Sally Slipper is a widely respected writer who has been writing for 5 over years often writes on professional indemnity insurance for tradesmen and a wide range of other subjects.