Risks of Running a Business Without Insurance
Why you Need Insurance
All businesses take risks, but running a business without insurance could be one risk too far. Here’s why Business insurance is so vital.
Business Operating Without Insurance
While businesses put procedures and controls in place, sometimes you can’t stop the unexpected occurring. Aspects at risk include:
- Business contents
There are several types of insurance you may wish to consider to ensure you are covered.
The Risks of Operating a Business with No Insurance in Place
The main risk of operating a business without any cover is that you will lose money. This may be through replacing or repairing damaged property, paying compensation or not being able to trade as you normally would. Unexpected events can lead to companies going out of business if they are not adequately covered for what they would not be able to recover from.
- Claims against your business from employees, customers or visitors due to accidents caused by business negligence
- Damage to property and contents after events such as fires, floods, water leaks and accidental damage
- Loss of revenue during a period of repair or insurance claim (business interruptions)
- Breaking the law
Sadly, the risks of having no business insurance include:
- Going out of business
- Not being able to afford compensation claims
- Loss of income
- Reduced profits
- Inability to repair or replace damaged goods
- Not being able to recover from business interruptions
- Legal case against you
What Does Business Insurance Cover?
If you have any employees, you’re required to have Employers’ Liability insurance. This will protect against claims should your employee become ill or injured due to an act of business negligence. While not required by law, it should also cover for Public Liability insurance which involves claims from customers or visitors.
Building and Contents:
Buildings insurance is only a necessary part of business insurance if you own the premises rather than rent. This covers everything that makes up the framework of the building such as walls, doors, floors and ceilings. Business Contents insurance covers what’s actually on the premises such as stock, money, furniture and personal belongings.
Business Interruption insurance protects businesses from losses occurring as a result of waiting for damage to be rectified. It’s no good being insured to replace your damaged contents if you’ll go out of business or lose money while these are being repaired or replaced. This type of cover insures you from the time of the damage to the moment you’re able to trade from your premises again to full capacity.
The Importance of Having Business Insurance
The consequences of having no insurance can be huge. Seriously consider the consequences of what would happen if an unexpected event occurred such as a fire or a flood, or even a visitor to your property suffering an injury due to an oversight on your behalf. Could your business recover without insurance?
Speak to Invicta Business Today
Speak to a specialist business insurance broker who can help put together the right package of policies for your business. At Invicta Business, we will help ensure your business remains protected. Give us a call on 0330 0450032 to speak to one of our team.