There are many costs involved in the set up of even the smallest business, some can be left until that ‘rain day’ in the future when all the money has come rushing into the bank account and you can buy everything you want . . . . But there is a point at which you must make hard decisions to spend on things that do not always seem to offer good fiscal sense at the time. Insurance, or business insurance to be more accurate, is one area never to be skimped on. Business insurance can protect companies from the unscheduled and certainly unplanned for expenses cause by accidents. Property damage costs; lawsuits and operational shutdowns all come into play when there is a real emergency.
The main purpose of business insurance is of course to offer cover against certain risks. Take high cost events such as a festival, wedding or staging an exhibition. These all involve high cost labour; lots of equipment ad decent weather. Financial risk buffer is the name of the game here so high risk insurance policies are becoming more and more popular. This policy could well help in the case of a major fail through storm or other incident – it helps to offset those out of pocket expenses.
Legal compliance is another type of policy that is mandatory by law and includes such cover as Employers’ Liability which is required if you employ staff, sub-contractors or even work experience candidates. Public Liability cover is also pretty essential although not legally required. It makes perfect sense to have a policy from a third-party and customer protection point of view for incidences such as a member of the public perhaps being injured or their property injured by anyone else’s business activities. Of course, there are many more topics of claim now such as professional reassurance or professional indemnity which many clients, suppliers or investors require to know a company holds before any contracts can be signed to commit to a project.