4 Reasons Why Your Business Needs Insurance

4 Reasons Why Your Business Needs Insurance

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No matter what business you are involved in, there will come a time when a catastrophe happens whether it is an employee hurt whilst doing their job or a fire occurs, and you need the right insurance to protect you, your staff and your business. The best way to do this, is to have the correct insurance for all eventualities, so that your business is protected and your business can continue on. Not having insurance is very irresponsible and in most cases you are probably conducting business illegally, if you don’t have it. There are many benefits to having the necessary and correct insurance  and the following are just some of the many good reasons why.

  1. It’s The Law – In the UK, the government requires you to have the necessary insurance so that your staff are protected. You need to have unemployment and disability insurance and insurance in the event of an accident in the work place. If you don’t have the necessary insurance in place, then you will be subject to large fines, both criminal and civil and you as an employer, could end up in her majesty’s prison with room and board.
  2. You Might Get Sued – We live in a society in the UK now, where people don’t think twice about going to court if they think that their rights have been infringed upon. If you are a building contractor and you hire lots of machinery then you need to have plant machinery insurance. However, maybe the insurance only covers for damage to the machinery if you break it while using it. There may be no cover for a situation where you use an excavator that bursts a mains water pipe or you hit an electric wire. If that happens, you will be out a lot of money and it may even put you out of business.
  3. Insures That Your Business Continues – In the event of some kind of major problem regarding your employees or your business ,the right insurance policy means that business doesn’t have to stop, as a result of the problem encountered.If your business had to close while you figured out what to do and maybe go to court, then you may lose thousands of pounds and your business may never recover. The right insurance will cover you for money lost during the course of your normal business which will include rent and salaries owed to employees.
  4. Provides Your Business With Credibility – If you have the correct insurance, it lets your customers and your suppliers know that it is safe to do business with you. If anything happens, they know that you have things in place in order to provide them with compensation. It is a great way to build trust in today’s modern business environment.

Having the right insurance gives protection to your most important asset, which are your employees. Without them, the business could not function and so it pays to have the necessary insurance to protect them. It provides protection for them and for you.

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