Many business owners try to save money by not having any insurance or by not having enough. One is just as bad as the other if something disastrous like a flood or a fire wipes out your premises. You stand to lose everything and will have no way to recoup your loss. You will never be able to start up business again and may not be able to pay your debts. Commercial lawyers will tell you insurance is one of the most important aspects of a business.
Not having enough insurance is almost as bad as having none. There will not be enough to cover your loss and start up again if there is not enough insurance. The only good thing is that it may just cover your debts. But that is small comfort if you want to start your business up again.
There are different types of insurance you need for business.
- Workers compensation if you employ staff.
- Motor vehicle third party personal insurance.
- Key person insurance, especially if you are the main one to run the business. Who will do the work if you are injured or ill?
- Insurance to cover loss of equipment and stock due to environmental disasters, vandals or theft.
- Public indemnity if you are a professional.