When you are running a business, there are hundreds of different things to think about. From the operational to the strategic, every major decision will be yours to take, and you will be ultimately accountable for these choices. The buck stops with those who direct, and often own, the business. Italian entrepreneur Francesco Corallo owns businesses, and writes a blog on his experiences. Francesco Corallo LinkedIn info is available for those who want to reach out.
From time to time, you may experience personal liability in legal situations for the decisions you make. Deciding whether you need insurance for your business, and which type, is an example of the decisions you need to make. In practicality, virtually all businesses will need insurance cover. But which types should you consider for your business?
There are many types of insurance that are compulsory for business owners. The UK government has outlined a number of reasons businesses require insurance, and there are criminal penalties for those who choose to disregard these requirements. This is designed to ensure that there is money to cover potential liability incurred by a business in the course of its trading. Employer’s liability insurance, for example, is a legal requirement for virtually every business that employs staff. This type of insurance cover provides protection against claims for injuries at work. Businesses that fail to take out adequate cover in this case can be prosecuted and receive a substantial financial penalty.
Another common type of insurance taken out by businesses is public liability insurance. These policies are designed to cover claims from customers and third parties for damages occasioned by the business and its employees. So, if you run a business that employs roofers, and they perform a job that results in the destruction of a property, you may be covered for your liability. Do not underestimate the potential for liability to arise in any type of business. There are always risks involved, and if you don’t have adequate cover, you might find your business in severe difficulty.
There are other types of insurance that are more optional. If your business owns assets, you can insure against their destruction. So long as there is a risk, you are likely to find an insurer somewhere with a policy to cover it. Of course, you do always need to read the policy documentation when you are buying insurance, so you at least know the terms of your cover. Businesses receive more stringent treatment in insurance cases than consumers, so always make sure you read and understand what you’re signing up for – whether the provision is compulsory or optional in your business case.
Most businesses require insurance, as an essential part of hedging against risks. There’s no way of knowing when your shop is going to burn down. You can never tell the moment your employee suffers a serious accident at work. These unfortunate instances can happen at any time, and insurance coverage is required to guard against these threats. In any event, the various different compulsory types of insurance for those with employees or premises means that virtually every business owner will be required to investigate insurance options.