How Much Business Insurance Cost
Considering Insurance Needs
Starting a small business requires tireless effort and endless financial reserves. Besides dealing with necessary tasks to start the business affording exorbitant start-up costs, establishing a customer base, forecasting cash flow problems new small business owners are besieged on all sides by risks. Business owners also need to consider having a suitable cover for the building, contents, employees, and public in terms of insurance and need to speak to the right broker who can run a quote for business insurance cost.
The only sure-fire thing you can count on during the tumultuous beginning stages of your business or later in its development is the protection offered by commercial insurance. Avoid losing everything to a disaster that you could have easily insured purchase robust and comprehensive commercial insurance to keep your small business protected on all sides.
Essential Covers and Business Insurance Cost
Small businesses vary widely in their insurance needs. Many different factors including industry, location, and size will determine the type of insurance your business needs to survive. All businesses, however, can benefit from the essential covers listed below.
- Employers’ liability is mandatory for all UK employers. It covers employers’ liability for bodily injuries or diseases their employees may suffer in the course of their employment.
- Property protects your commercial property, buildings, and contents from a broad range of risks.
- Business interruption recoups lost profits in the event that insurable property damage causes your business to temporarily close.
- Public liability covers your liability for third-party injury and property damage arising from your business’ operations.
- Products liability insures against damages and costs arising from accidental injury or damage caused by products supplied by your business.
- Cyber liability provides protection against a host of cyber threats, including hacking, stolen data and system failure.
This list is not exhaustive. Depending on your specific business, you may need to consider additional cover options to fully protect your business.
Additional Covers to Consider
Carefully consider the needs of your business is there anything unique about it that would require additional insurance protection? Consider the following additional covers. Many businesses cannot afford to go without them.
- Motor Fleet
- Legal expenses
- Theft by employee
- Equipment breakdown
- Loss of money
- Trade credit
- Professional Indemnity
- Key person
- And much more
Employment Practices Liability Insurance: Crucial for Small Businesses
There has been an increase in litigation concerning workplace issues over the past few years, with employment tribunals awarding thousands of pounds for individual claims. This increase in litigation is partially due to employees becoming more aware of their rights and the implementation of worker-friendly employment regulations. Employment regulations affect both small and large businesses, yet alarmingly, many small businesses do not have Employment Practices Liability Insurance (EPLI) cover to protect against these claims.
High Price Tag
Employment-related claims can be extremely costly, especially in cases that drag on for years. With a slow economy and complex employment regulations, these cases are on the rise. Without EPLI, a single claim from an employee may wipe a small business out. Many small businesses cannot afford to pay these costs and keep their company afloat.
What Puts a Small Business at Risk?
Understandably, it can be much more difficult for small businesses to defend themselves against employment-related claims because they tend to have fewer resources and a different work environment. Small businesses are particularly at risk for employment-related claims for the following reasons:
Many have a minimal staff and lack of in-house counsel and/or full human resources department
- to rely on. With an average of around 15 to 20 changes annually to employment regulations, many small businesses do not have the resources to keep current.
- Overall lack of extensive record keeping on employee performance
- More intimate working environments may cause personal riffs
An Affordable Solution
Fortunately, with employment-based legal actions on the rise and the economy’s sluggish upward climb, EPLI cover is becoming more affordable. More insurers are beginning to offer EPLI insurance policies with comprehensive cover to smaller businesses to protect them in tough times.
Part of investigating available insurance covers is determining the points where your business is weakest. Pinpoint the spots where your business is the most vulnerable, and secure insurance that bolsters those vulnerabilities.
In fact, EPLI insurance is becoming so important to the success of small businesses that it is being offered at more affordable prices and being tailored specifically for smaller businesses. Talk to Arkwright Insurance Brokers at 01204 392 525 to learn whether this risk transfer option is right for your business.