Advice and Ideas for UK Small Businesses and SMEs
There are so many forms of business insurance. Which of them does my business need?
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Small Business Insurance
Setting up a new business is full of learning curves, one being how many different types of insurance policies you need. Here’s a list of all the essentials and need to know extras .
Small Business Insurance
The type of insurance you need for your DJ business will depend on the nature of your business and whether you have employees. Let’s clear things up a bit.
Small Business Insurance
From liability insurance to property protection, small business owners must be aware of the measures to enact to protect their company. Here, we look at what cover is out there and which key policies should be considered.
Small Business Insurance
Professional indemnity insurance isn’t required by law for electricians, but it is worth your while to cover yourself from damage to a property
Small Business Insurance
Setting up a new business is full of learning curves, one being how many different types of insurance policies you need. Here’s a list of all the essentials and need to know extras .
Small Business Insurance
The type of insurance you need for your DJ business will depend on the nature of your business and whether you have employees. Let’s clear things up a bit.
Small Business Insurance
From liability insurance to property protection, small business owners must be aware of the measures to enact to protect their company. Here, we look at what cover is out there and which key policies should be considered.
Small Business Insurance
Why do IT contractors need public liability insurance, what exclusions do you need to know about and how do you find the right policy?
SMEs are the backbone of the UK economy and as such need to protect themselves and their employees. Most will have insurance for what they can see and feel – their contents, their building, their cars or fleet – but many forget or don’t even consider their human capital, their loans and their debt.
The loss of a Key Person, for instance, could put the very survival of a business at risk. Legal & General research has shown that as much as 40 per cent of businesses would cease trading in under one year if a Key Person died or became critically ill, yet 57 per cent of businesses do not have Key Person cover to protect them should this happen.
A critical illness or death is sadly not something you can predict and so to have insurance if this does occur is vital. This protects not only the business but the staff who are employed, as it allows the business to continue and for those jobs to be kept.
See also: The key insurance measures I put in place for my company
Another really important form of insurance which SME business owners and sole traders really need to consider is loan protection. One-third of UK SMEs have no insurance cover at all for their debts, despite the fact that nearly two-thirds of businesses carry some form of debt and the average SME owes nearly £350,000 at any one time.
If a Key Person was to fall critically ill or die, this could present some businesses with extreme financial complications. Business loan cover can protect organisations when faced with the inability to repay loans, helping to pay back any outstanding loans and safeguarding the business owner’s personal wealth.
Our research did show that of those business that we spoken with who did have some form of business protection, the 89 per cent did so because they were advised to do so. Professional advice in this field and around something so important is crucial and I would advise business owners to discuss with a financial adviser how best they can protect their organisation and employees.
See also: Insuring your business against disaster – a checklist of insurance types