If you are running a business, you probably need insurance. Insurance is a vital part of any successful business. It’s not important how small or large the business is, either. You will also need property insurance if you are running the business from premises. Even if you are running a small business you will need more than just property insurance. The right insurance will protect your business and minimize exposure to risk.
Some forms of insurance are compulsory, such as workers’ compensation and third party car insurance. Your insurance requirements will vary according to the type of business you are operating. In business you deal with a variety of potential risks each day. You cannot avoid all the risks out there, but with strategically placed insurance you will be able to manage the risks. Risk management will increase the probability of success and reduce the probability of failure of your business.
If you operate your business from home, then you must be sure that your existing home and contents insurance also cover your business activities, including your clients when they visit your business. Speak with your insurance consultant and make sure everything is covered. As a home-based business it is vital that you make sure you have the correct level of insurance to protect yourself. One of the most common mistakes made by home-based business operators is to assume that home and contents insurance covers their business risk - in many cases it doesn’t.
Here is a list of insurances you should consider, especially if you are running a small home based business.
Public liability cover. This covers an accident on your premises for persons visiting your business at home, such as customers, suppliers, salesmen, delivery men.
Workers compensation for all your employees, depending on the work contacts you have with them.
Fire, storm and theft cover for the loss of any stock and equipment. Think about the computers and other electronic equipment in your home business.
Professional indemnity insurance if you're in a service industry, especially if you're contracting to official bodies.
Personal accident or illness.
Losses arising from interruption to your business for any reason.
Marine policy if you send products via freight carriers or post.
Note that many policies don't cover tools of trade, office furniture or computer equipment used for your business, unless you've specifically advised your insurer and they've agreed to cover you. Don’t forget to insure laptop computers.