The Importance Of Insurance
Businesses today face many challenges. Insurance is there in order to make certain that these challenges do not disrupt the company, or even destroy it.
Insurance can protect you and your company from not only the normal everyday risks that we all expect but also the big, often sudden, ones that can result in huge claims for compensation. Insurance can provide protection not only for you and your business but also your employees and your standing in the community. Ultimately it could protect your income and well-being.
Why is cheap car insurance a possible problem?
Many businesses make the mistake of looking for the cheapest possible car insurance. A business can have a whole fleet of vehicles, some of which are driven by particular name drivers only, but some are pool vehicles which can be used by any driver that happens to be available at the time. Insurance however can be a complicated matter and car insurance is no different. A policy may stipulate that particular vehicles can only be driven by people over the age of 25; or those who are permanent UK residents.
However: will your legal department allow you refuse to employ someone under 25 who happens to be newly arrived in the UK? Can you refuse to allow this person to drive vehicles, even though it may be illegal? Then again can you afford a policy which allows any driver regardless of age or residency qualification to drive? Remember that if someone is caught driving whilst uninsured in a car belonging to a different person, that different person is also committing a criminal offence and can, and almost certainly will, face a court to answer the charge.
It is imperative that all insurance, including vehicle insurance, is arranged with the utmost care and preferably with professional help.
What kind of insurance do we need?
A business normally requires some, possibly all, of the following:
- Public liability
- Employers liability
- Professional indemnity
- Buildings and contents cover
Bigger companies can also face more complex risks such as terrorism, cyber attacks, defamation, and much more. Every business is different and so every business requires protection against different risks.
Smaller businesses can be at greater risk than larger ones because they do not have the financial backing to survive compensation claims or other disasters which adversely affect them. A simple slip or trip in the workplace can lead to a court case that can destroy a business; a fire can wipe out years of hard work. Managers need to not only concentrate on day-to-day essentials but also consider what happens if things go wrong – and they do so all too readily.
Your business is unique and therefore it is highly likely that you need a unique insurance package. It is also easy to look for the cheapest insurance by visiting price comparison websites; but few managers have the time to go into all the small print on innumerable policies. Failing to do so however can result in a disaster if something goes wrong that should have been insured, but wasn't, because of an oversight. A professional insurance broker who specialises in business insurance should be able to advise managers on exactly what insurance they need, where to buy it, and how much they really need to pay for it.
Majority of brokers will not charge the company they advise a fee, because they will receive commission from the underwriter that they pass the business on to. In the vast majority of cases working through a broker is the only way to buy a lot of insurance products anyway, since few underwriters will deal directly with businesses, except perhaps the very largest ones.