4 types of insurance every business owner should consider

Whether you’re setting up your first business, or you’ve been trading since the day you took your first breath, you would know that insurance is essential – and in some cases, compulsory. You’ve probably already acquired comprehensive and third party insurance on your stock and building, so you’re protected against fire and theft. Think of them as the foundations of a protective wall around your business.

But for ultimate security, you’re going to need more than just the foundations. There are many ways you can add building blocks and cover gaps in your insurance so that no matter what happens, your business is secure.

Insurance business owner should consider

Image Credit: Alan Cleaver

Keyman insurance

This is more commonly associated with very large organisations, but if your business is co-owned with a partner, keyman insurance is something you should seriously consider. For large corporate groups, it pays a lump sum in case of the loss of a figurehead; for example, the Virgin Group likely has keyman insurance on Richard Branson. For small businesses it’s just as important to protect the interests of each partner in case the other falls critically ill or passes away. Keyman insurance helps arrange correct buy-sell agreements to enable the business to go on as smoothly as it can in case of the loss of a partner.

Public Liability insurance

If your work takes you or your employees outside the office, this can make or break the future of your business. Many businesses have public liability insurance for decades and never claim – but when claims do happen, you’ll be glad you saved hundreds of thousands of dollars with this policy.

Professional Indemnity insurance

This is particularly important for doctors, lawyers, consultants, and anybody dealing with government. Mistakes happen even to the best of us, and once in a while they can have serious consequences. With professional indemnity insurance, one mistake won’t demolish your years of hard work. Your insurer will cover any legal claims made against your company, allowing you to deal with the protection of your reputation.

Income Protection

You’ve probably heard about income protection as a good tax deductible option for any full-time worker, but it becomes even more important to consider for business owners. Income protection will replace up to 80% of your income in the event that you fall sick for a lengthy period of time, giving you the chance to recover before returning to work. Business owners also have the option of an additional business expenses benefit. Though it will bump up the cost of your premium, it will also ensure that certain fixed business expenses are covered while you’re receiving income protection.

 

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