If you own a business, you’ll know how important it is to have adequate insurance cover in place. However, as is the case with most insurance policies, the guidelines are not always clear. How many of us actually know what we’re covered for?
We asked Rigby Financial’s insurance expert Andrew Rigby for some more guidance around the subject of business and employee protection, and the reasons every business owner should have cover.
1. Your workforce is your most valuable asset, so protect it
Business and employee protection isn’t just a single level of cover; it encompasses a number of policies, from group personal accident cover to business travel cover. Business and employee protection policies are a great way of showing your company’s loyalty to its staff.
2. Business and employee protection can be a deal breaker for potential recruits
What separates your company from the rest? What makes your company stand out from your competitors? A good level of employee protection cover can be an attractive prospect for potential recruits, much like a private pension scheme.
3. You’ve got to protect your business, should the unfortunate ever occur
You’d insure your car, so why wouldn’t you insure your business too? There are the compulsory policies that every company should have, but there are also a number of policies that can protect your company financial assets, too.
For instance, a cyber liabilities policy can help to recuperate lost costs if your company was to fall victim to cyber crime – a growing threat for all companies with a website.
4. Costly legal fees can often spell the end for a business
Depending on the type of cover you take out, you may be covered for legal expenses, fees and representation costs. If someone makes a claim against your business, the cost of going to court can spiral, leaving your company to shell out more than it can afford.
5. A lack of cover could leave your most senior members of staff in the firing line
Often in business, the most senior roles come with the highest level of responsibility. Business and employee protection polices serve to cover every employee within your business, including directors, senior members of staff who are more likely to be held accountable for any failings.
6. Incidents can also occur outside of the office, too. Are your sales team covered?
The nature of sales means your employees may work on the move, or regularly travel between meetings.
And while your staff may be covered by certain policies, such as public liability insurance if they were ever to be injured, you can’t be sure they’re covered for everything else related to their job.
A good level of travel insurance can cover your team against delays, lost belongings – laptops, mobile phones – and additional accommodation costs.
Tips for picking the right insurance cover for your business
We’ve touched upon the importance of having adequate cover in place, but an insurance policy can be useless if it doesn’t meet your company’s requirements.
- Always shop around for the right policy
Consult comparison sites, independent financial advisers and insurance experts. Never take the first quote you see, it always best to shop around.
- Be realistic about the price of your cover
Nobody wants to pay over the odds for insurance cover, but there’s no point paying for a policy that doesn’t meet your requirements.
- Always read the small print and terms and conditions of your policy
Read the full terms and conditions and policy details of any cover you take out to check exactly what you’re covered for. Don’t be afraid to ask questions. If you decide you’re not happy with your policy, most insurance companies offer a cancellation period.