Insurance is often put off as an expensive extravagance that start up companies don’t need to worry about until they are a little more established. Of course, the consequence of this is that taking out business insurance can end up going on the back burner for much longer than is sensible, especially for non-compulsory cover like public liability insurance.
One of the major deciding factors over how much you’ll need to pay on your business insurance will be your annual turnover. If you are at a stage where you don’t think you’ll be able to afford insurance, then that argument becomes mostly erroneous unless you do something particularly risky or hard to insure. A small company with low annual turnover will therefore likely have small premiums, therefore could be cheaper to insure than you might think.
It is however still clearly a cost and unnecessary expenditure should always be avoided when running a small business (one should probably argue it should be avoided in life in general too). With this in mind, the question you should be asking yourself is if insuring your business will really be an unnecessary cost.
Business insurance covers you from being knocked out of action by those unexpected things that crop up from time to time, be they something that has taken your premises offline for longer than you’re happy with or something along the lines of a public liability lawsuit. You can’t schedule in when these things will hit you, but you can have a backup plan in place for when the worst hits.
A lot of the things business insurance protects against might be unlikely to ever happen to you, which is something to be celebrated. No one wants to face down legal action or an accident that takes you out of business, but no matter how unlikely it might be, there is no telling when it might happen. There isn’t some governing force of “playing fair” that would prevent anything from happening in your first year of trading for example.
Considering how much time, money and effort you will poor into any business that you run, the cost of not insuring it could be argued to be considerably higher than the cost of insuring. A small company will after all have small premiums, but not necessarily smaller costs if something goes wrong.
Provided by YOUR Insurance , an insurance broker specialising in public liability insurance for small businesses and tradesmen.
By YOUR Insurance