Every business needs insurance to help cover them if anything unexpected occurs, such as financial hardship, property damage or cyber security breaches. Having protection in place can help businesses survive in today’s competitive climate when many companies are struggling to stay afloat. There are a range of different insurance policies for businesses to choose from to aid them with the needs of the organisation. Let’s explore some of the main types of insurance that every business owner should have.

Business Insurance Types

Employers’ Liability Insurance

If your business has any employees, it’s a legal requirement to have employers’ liability insurance in place. This insurance protects employers from the cost of compensating employees who are injured or become ill while working for them. Most business insurance will include this as standard, but it might need extra cover in place depending on what type of company you have and the number of employees you have working for you. It also covers claims of property damage that’s caused by employees.

Commercial Property Insurance

The physical assets of your business are protected with commercial property insurance, such as the buildings, contents of it and any fixtures that are in place. This helps if your stock is stolen by thieves or damaged by unforeseen circumstances. The cost of this insurance affects the size of your business, location and rebuild costs.

Credit Insurance

Unpaid invoices can be a real pain for businesses, as it could get to the point where not enough money is coming into the business. Credit insurance protects businesses from losses due to unpaid invoices from clients or customers. It can help businesses grow by reducing the risk of default and insolvency that might come as a result of these invoices not being paid. The cost of credit insurance is usually a percentage of a business's turnover, plus a risk involved. The greater the risk, the higher the premium is likely to be.

Cyber Insurance

In the digital age we live in today, cyber attacks are increasingly common with many scammers looking to steal your private information and finances through online means. Businesses are often targeted by these cyber attacks and could potentially be the victim of huge financial losses. Cyber insurance can help businesses respond to and recover from a cyber incident, as well as stop it from happening in the first place.

Business Interruption Insurance

When an unforeseen circumstance prevents a business from operating normally, business interruption insurance (BII) shields it against monetary damages. It might also assist in paying for extra expenses needed to maintain the operation of the company. If your business can not operate day-to-day as normal, it could lose out on a lot of money which can completely destroy cash flows. The unforeseen circumstances include damage to property, supplies and equipment.