5 Types of Insurance Your Business Might Need
If your business is running very successfully, it can be hard to imagine it any other way. However, this is the most important time for you to future proof your business by investing in the right insurance, should you ever need it. Compared to the potential damage a lack of insurance can cause, the investment is very small and can help you to expand with confidence. So, here are the 5 main types of insurance that your business might need!
Professional Indemnity Insurance
Professional indemnity insurance is designed to cover the cost of compensating clients for loss or damage as a result of poor standards of work or negligent work. This could be providing the wrong advice that causes a loss, not adhering to a professional code of conduct or breaching confidentiality. All of these things can result in large claims by your clients, so having protection against this is vital to future proof. You may have complete trust in your employees, but everyone makes mistakes, so protecting your business in this eventuality is key.
Key Person Insurance
Another type of insurance you need for someone who is absolutely essential to a business and if they were to get critically ill or pass away, it would be devastating for the business. This will usually be the owners, founders or directors of a company and will ensure that if one of these people were to get very ill where they are unable to work of if they passed away, you would have the cover you need to take action and make sure your business can stay afloat. This is often most important for small businesses!
Trade Credit Insurance
Next up, if your business trades on any kind of credit basis, for example if you provide goods or services upfront and payment is required later down the line, you need trade credit insurance. Someone you are trading with may not pay or they may become insolvent, and if this is the case, when you have the right cover, your trade credit insurance will cover the loss. This helps you to expand more safely and trade with more confidence, knowing that if one trade was not successful, your business wouldn’t be in turmoil as a result. Work with a credit insurance brokers to make sure that you get the right cover, and this will also make sure that if you do need to make a claim, they will manage it all for you!
Equipment Breakdown Insurance
Equipment breakdown insurance is really important for some businesses, as it any equipment that you rely on for your business is damaged or breaks down, and as a result you are at a loss, your insurance will cover you. An example would be if a part of a factory line breaks down and it is unable to run as a result of it, and if this is off for a matter of hours, you could potentially be losing thousands! So, equipment breakdown insurance will help to make sure that if this does happen, you are protected.
Last but not least we have cyber insurance, which helps to protect your business from any data breaches containing sensitive information, like credit card details, social security information, health records etc. Cyber insurance also usually covers a variety of internet-based risks depending specifically on your policy. Hackers are getting far more advanced and in some cases, preventing them completely is impossible. So, if you work with any kind of customer data, then having cyber insurance is certainly advised.