Getting started with business insurance
When it comes to deciding which area of your business to protect with insurance, it entirely depends on you and your business activities. To get an idea of what kind of business insurance you might need you can start by thinking about these two questions.
- Would your business be okay financially if a major incident happened?
Major incidents can include weather-related events, burglary, fire or costly legal action as a result of one of your products or your staff. You can tailor your cover to suit your situation and events which could be more likely to happen to your business than others. For example if your business is located in an earthquake risk zone you may want to have extra cover for this.
- Is your business dependant on a particular employee or piece of equipment?
You can get cover for a particular asset or person, or for your expenses to help keep your business up and running as soon as possible.
Your answers to these questions will be a starting point to help you break down areas of your business which are at risk. You can discuss your thoughts with a financial Adviser to better understand the kinds of protection you can get and the costs involved. Learn more about how this works.
When insurance can help
It helps to think about situations that may stop your business from operating or cause considerable financial loss. Here are some examples:
- Something is stolen at your business premises – If someone steals your stock, pieces of equipment or other items on your business grounds, you can get cover to minimise the loss.
- A key piece of equipment breaks down – Some businesses depend on a particular piece of equipment to operate. You can get cover to pay for the repair or replacement of this.
- Something happens to a key person in your business – Every staff member in your business is important. However, there may be some that are critical to your trading operations. You can get cover so that, if a key person in your business is not able to work, you are protected against some of the financial impact of their absence. This is known as key person insurance.
- An unfortunate event happens to you and you want to keep your business operating – Similar to protecting against the loss of income, you can get cover that will pay for certain fixed expenses such as rent or employees’ salaries if you’re too ill or injured to work.
These are examples of the kinds of incidents which have corresponding insurance options. The cover you need depends entirely on your business in case the worst happens.
Learn more about how a financial Adviser can help with insurance.