Why insurance matters for your business

If you have a business or are thinking of creating one, it is imperative to purchase insurance.  Having insurance enables you to have financial backing for any damages, theft, unforeseen events etc. Therefore, no matter what happens to your business, you are always covered and protected. One may not think that there is landlord insurance, but many helpful reviews on the best landlord insurance can provide insight into the benefits of attaining landlord insurance. For example, many companies such as AXA Landlord Insurance specialise in different types of insurance products and services. 

What is landlord insurance?

If attaining landlord insurance is unheard of, allow this to provide more detail for you. Landlord insurance essential protects you when you own more than one property. It can save you from any risks associated with being a landlord. When it comes to landlord insurance, there are three different types. Firstly you have landlord building insurance which covers you when needing to either repair or re-build the property due to damage that has occurred to it. Secondly, tenant default insurance can cover you for a short period if your tenant cannot pay their rent. Lastly, property owners’ liability insurance covers any compensation given to a tenant when injuring themselves.

What type of insurance should you consider?

Although there are many different types of business insurance, the main ones to consider are as follows. Employer’s liability is both essential and legally required if you employ staff. If you are in contact with the public, you need public liability. If you provide expert advice, one needs professional indemnity insurance. There are other types of insurance such as business building insurance, stock insurance, personal accident, business interruptions, and business legal protection insurance.  

Are you legally required to have business insurance?

The answer truly depends on what type of business you have. Some companies are legally required to have insurance, while others do not. The one type of insurance that a business must-have, no matter what type of company it is, is employers liability which is, as previously discussed, only for when your company has staff. However, certain professions require specific insurance policies. For example, accountants, solicitors, and healthcare practitioners need professional indemnity insurance. However, it is essential to know and understand that you won’t qualify for specific jobs if you do not have the correct insurance. 

The risk of not having any insurance

The primary and most obvious risk is that you will not be protected if any damage or theft occurs. In addition, you will lose money due to either having to repair or replace broken objects or buildings, paying compensation, or not being able to trade due to the damages. Therefore the risks of not having business insurance are as follows, having to pay compensation claims, closing down, loss of income and being sued or having a legal case against you. Additionally, not being able to replace or fix any damages. Moreover, not being able to recover from business interruptions financially. Lastly, not being protected for environmental damages such as fires, floods, earthquakes etc. 

Although it is not legally required to purchase business insurance, it can be very beneficial. Especially if one has employees or staff members, it is therefore legally required to have at least employers liability. Additionally, it can be hard to receive work if you do not have the necessary insurance policies. Moreover, by purchasing insurance, you are therefore covered against any claims taken out on you, theft or damage that might occur, protected from any environmental damages and much more.