No matter how hard you try, some things can't be avoided. People could become ill or injured, natural disasters may strike, and products can be damaged. All of these problems can lead to one thing: financial losses. So, what is business insurance and how can it help?
Business insurance is there to help cover those losses and get you back on your feet again. Beyond protecting your hard-earned assets, business insurance offers safeguards for a variety of other valuable considerations. It's smart to think about the various risks that come with being in business and to make sure you're doing what you can to mitigate them. By taking advantage of the different types of business insurance policies out there, you'll be able to avoid costly mistakes and put your mind at ease.
Why do I need business insurance?
Having a business of your own means that you're the one responsible for making sure that the company you've built is secure. Insurance covers everything from mistakes and accidents to theft, damage, and legal fees, but choosing the right policy for your needs is critical. It can also lend credibility to your company by demonstrating that you are trustworthy enough for customers and employees to do business with you.
Business insurance when working from home: If you work from home and welcome clients onto your property, then public liability insurance may be wise. If you give advice or handle client data, professional indemnity insurance might be a good idea.
Business insurance for an online business: Online businesses face unique risks and challenges that differ from traditional brick-and-mortar businesses. If you sell products online, a stock cover can protect your inventory against theft and damage. Online service providers who sell services rather than physical goods will be protected by professional indemnity insurance if a client suffers a financial loss by using your service.
The types of business insurance and their coverage
Do you know if you have the right insurance to protect yourself and your business? Whether you're a small business that’s just getting started or an established one with employees and clients, it's important to ensure that you have the protection you need.
Here are some of the most common types of business insurance you should be aware of:
Public liability insurance: In the event that a client takes a fall while on your premises, or if you damage something that belongs to them, public liability insurance can help you cover the legal fees and claim costs.
Employers’ liability insurance: The law requires you to have this insurance if you have even one employee, no matter if they are temps, part-timers, or full-timers. When an employee gets hurt or ill while working for you, employers’ liability insurance can help cover the costs.
Professional indemnity insurance: A professional indemnity policy protects businesses that offer expertise, skills, or advice as part of their services. This insurance can assist in covering legal fees in the event that your work damages your client's revenue or reputation.
Product liability insurance: If a product you have developed, repaired, or supplied results in injuries or damage, product liability insurance can help compensate those harmed. Manufacturers are not the only ones responsible for damage.
Business contents insurance: contents insurance provides protection for your business’s equipment, stock, and tools. If you run a home-based business, it may not be covered by your home insurance policy, so you’ll need to take out separate business contents insurance.
A combined business insurance policy simplifies the management of your business insurance by consolidating multiple insurance products into one plan.
What is business insurance likely to cost?
Since each business is unique and has its own risks, the cost of your business insurance may vary significantly. The cost of your policy depends on the type of insurance you need and the nature of your work. Insurance costs are typically higher for businesses with a greater risk profile. You can easily calculate the cost of your business insurance by requesting an online quote.
Do you pay tax on business insurance?
Business insurance is an essential cost that keeps your business running and is considered an “allowable expense” for tax purposes. You can deduct business expenses from your income when calculating taxable profits.
Let our friendly advisors take care of your business insurance.
If you’re still wondering, "What is business insurance?" or “What type of business insurance do I need?”, then rest assured we are more than happy to help. At Bluedrop, we’re not just another business insurance broker. We’re experts in the field, with a strong track record of providing bespoke insurance solutions to a wide range of businesses like yours. We can help you keep your business running no matter what challenges you face.