Providing your business with insurance is like providing a safety net to a trapeze artist. You hope that you won’t need it, but having it in place adds security and protection if the worst-case scenario should occur.
Your business may require certain types of insurance, depending on the circumstances. These may be because it is required by law (such as workers’ compensation insurance) or because people you deal with may require it to provide something to you.
Other types of insurance are your choice but can be an important way to reduce business risk and protect things like your:
Some forms of insurance are required by law.
Other forms of insurance may be necessary for your business’s needs to provide you with security in the event of incidents (and keep you from having it taken out of your pocket). Keep in mind the following for your business’s purposes.
These are personal insurances that cover things that could happen to you. These may include income protection or disability insurance, life insurance, business interruption or loss of profits insurance, or even employee dishonesty.
If you have important business assets, property, stock or products you can’t afford to lose, these types of insurance provides cover. This may include building and contents, tax audit, transit goods, farm insurance, etc.
Liability insurance protects you if you are liable for the damage or injuries sustained to another person or property. This is mostly optional, but it’s highly recommended for your business if the possibility of legal action is high. For some industries, liability or professional indemnity insurance is mandatory.
Insurance cover is required to protect against emerging technology risks within businesses. This may include:
Examine each type of insurance and consider if it’s something your business needs. Talk to a licenced insurance broker, business advisor or insurer for advice.