Essential Insurance For Your Business
You have finally succeeded in
accomplishing your goal in life: starting your own business.
However, now you realize that you may need to purchase business
insurance. Is business insurance necessary? It is in your best
interest to take out a business insurance policy, particularly
because many businesses operate in environments that demand quick
decisions and fast actions. In such environments, it is quite easy
for things to go wrong and problems to go unnoticed. This can create
serious dilemmas and have dire consequences for businesses, both
organisationally and financially. Insurance companies offer business
insurance to employers and provide compensation if something out of
the business’ control were to damage the company financially or
physically, or hurt the company’s reputation.
Employers’ Liability Insurance (ELI) is mandatory for any employers who have more than one person working for them. ELI offers financial compensation should something happen in your workplace that causes illness or injury to your employees, and they choose to take legal action against you in order to receive compensation. Additionally, some professions including financial advisers, accountants and lawyers are required to purchase Professional Indemnity (PI) insurance.
Apart from ELI, the specific type of cover you choose for your
business is up to you. You will need to consider how exposed to
risks, both known and unforeseen, you are prepared to be. Optional
insurance policies may also be tailored for individual businesses,
especially if you require specialised cover. For example, a florist
and an extreme sports company will surely have very different
insurance needs. It is for this reason that many businesses tend to
use the services of an insurance broker, or an expert who matches
employers with insurance companies that provide cover to best fit
their needs. These brokers are typically better prepared and
equipped to compare quotes and negotiation a package that meets your
specific requirements, although they will usually charge a fee to
customers who use their services.
Copyright Steven Manners 2012 All Rights Reserved