New business owners often forget the importance of commercial insurance (ow.ly/ 4aJUP). Many new companies do not feel they can justify the cost. But it really is vital that your business is properly insured. It will give you the much needed peace of mind and, most importantly, help you persuade potential customers that your business is trustworthy.
There are three types of commercial insurance that are particularly common. Professional indemnity insurance offers protection against situations in which you make an error in your work, or are negligent in the advice you give to a client. If the client suffers a financial loss, they will face a compensation claim, and claims of this type are often large enough to paralyze a business. Professional indemnity insurance can cover these costs and help keep your company stable.
Liability insurance is equally important. If your company comes in contact with a member of the public, a customer or a provider, liability insurance is vital. It will help you cover claims that arise from an accident that causes injury to a third party or damage to your property.
Finally, the Employer's Liability Insurance protects against compensation claims that arise from an injury or illness suffered by an employee during the course of their work. Again, claims of this type can be financially devastating, so it is important that you are covered. Even more important, Employer Liability Insurance is a legal requirement for any company that employs personnel, even part-time or temporary.
Video credits to Simply Business YouTube channel