The business environment is ever changing, meaning that alongside the day to day operations of running a small business, all sole traders and small firms must also keep on top of learning about the new matters affecting small businesses.
To prevent getting in trouble with external bodies, whether that is official authorities, an employer or regular customer, it’s worth setting some time aside to undertake these obligations on a regular basis, particularly ensuring that you have relevant insurance policies to protect you and your business if a situation arises. Here are some insurance covers you should consider purchasing for your commercial trade:
Public Liability Insurance
To ensure you and your small business is covered against the costs of claims made by a member of the public (such as a customer) related to your business activity, it is highly recommended that you acquire public liability insurance. Not only will it help you to cover compensation claims, but it’ll also provide you with legal expenses, cost of repairs as well as medical fees. For example, public liability insurance for builders will protect them against claims from third parties affected by any building work they have carried out.
Professional Indemnity Insurance
When negligence occurs, it can be a distressing time for both the business owner and client. However, with professional indemnity insurance, you and your business will be protected against claims for loss or damage, if you are providing a service or offering advice (even if it is for free!) Therefore, this is one of the essential insurance covers you should look into purchasing as a small business owner.
Product Liability Insurance
If your small business retails a variety of different products, you should consider purchasing product liability insurance to protect you and your business from compensation claims when a third part is injured by a faulty product. This cover also applies to small business owners who do not manufacture their products, so pretty useful in all instances.
Trade Credit Insurance
Do you often give credit to your customers on products or services they purchase from you? Then, trade credit insurance is worth every penny! It will assist your business in extending credit for new customers by providing more funds for this particular activity, so you can build a more loyal consumer base with flexible payment terms.
Income Protection Insurance
Income protection insurance is a brilliant addition to add to your remuneration package. It will pay you a regular income in case you are unable to work due to sickness or a disability. It is often known as permanent health insurance and is very useful to self employed individuals, as it can help you cover daily living costs whilst you are out of work.
The bottom line
It’s incredibly important for business owners to stay up to date with matters which may affect their small business. Whilst large businesses may have specific employees to deal with this area, small business owners may often be left scratching their heads. Therefore, it’s important to work with an experienced accountant who can advise and support on the ever changing legal requirements and the types of indemnity covers you should purchase to cover any compensation claims made by third parties.
Until next time.