What insurance have you purchased for your business? If you’ve only bought the essential or legally required insurance then you’re not alone – Hiscox’s last DNA of an Entrepreneur report saw 29% of businesses surveyed go for the bare minimum.
But taking the time to select the right insurance cover can boost your efforts to win new business, reassuring potential clients that yours is a business that is responsible and which can be trusted.
Not only does it give you peace of mind for you and your clients, it also allows you to concentrate on what’s important: growing your business.
Cutting through the confusion
But it’s also a potentially confusing area. In the same report last year, only 41% of respondents said they truly understood the insurance available to them. This was down from 46% in 2012.
If you’re one of those who falls into that category of finding insurance overwhelming, it can be easy to quickly tick a box and move on.
But successful businesses are ones that understand how to manage risk and taking time to assess where your company could be vulnerable means you’re prepared if something does go wrong.
That’s means going beyond assessing the risk from a new rival – a challenge the small business owner can rise to on their own – but also taking time to understand where help could be required, for example, facing an office fire or a court action from an unhappy client.
Taking time to select the right insurance means you can be safe in the knowledge that experts will help you to get back on your feet again quickly in the event something does go wrong.
Deciding what insurance to buy
So where do you start? Deciding which insurance policies to buy, and how much cover you need, can be confusing, so it’s worth making a list of your assets. Your office equipment, from computers and printers to chairs and desks, can be covered under an office contents policy.
In today’s business world, lawsuits are, sadly, becoming a fact of life for many small businesses and professional consultants or service providers – whether they are IT consultants, marketing advisors or accountants – can sometimes find themselves heading for court if something does go wrong, regardless of who was at fault.
There’s no escaping the fact that court cases have the potential to be long, stressful and expensive. But, with professional indemnity insurance, if your small business is sued, your insurer will arrange for a lawyer to defend you and will pay the fees and any damages.
Good for your business and for your clients
Having a public liability or professional indemnity policy can also help protect your business’s reputation in a crisis, with specialists ensuring the dispute is resolved with as little collateral damage as possible to your good name.
It also shows yours is a business that plans ahead. Many companies require their contractors to have liability insurance as a prerequisite for winning their business.
Small business insurance won’t break the bank and with 10% of the DNA of an Entrepreneur respondents saying they would take more risks if they felt their insurance would cover them, it gives you the confidence to follow your gut instinct and take calculated risks to grow your business, knowing that the other risks you face are taken care of.