All businesses need to be insured.
Your company may need insurance to survive certain unexpected—but possible—challenges. Answer these two simple questions to decide if you're at risk. Show Nobody likes buying insurance. It can be confusing and expensive, and you won't see any benefit unless you have a loss, accident, or claim. But insurance can make or break your business. Without the right insurance, a theft or fire can cause devastating losses. A personal injury lawsuit can leave you struggling just to pay the legal fees and yet many small business owners don't take the time to evaluate their needs and get appropriate coverage.
Business entities protect business owners from being personally liable for business debts and judgments. But a business entity won't help your business survive a fire, flood, data theft, or personal injury lawsuit. Nor will it protect you if you personally are accused of being negligent. To decide whether you need business insurance, ask yourself two questions:
If you answered “yes" to either of these questions, business insurance will help you minimize your risks. Types of business insuranceThere are several kinds of business insurance, each designed to protect against a particular set of risks. The insurance your business needs will depend on its type and size.
Buying insuranceTo get business insurance, contact an insurance agent who specializes in insuring small businesses. You'll often save money by getting a business owner's policy that combines several types of business insurance into a single policy. As with most things, it pays to shop around. However, beware of choosing the cheapest insurance or eliminating certain types of coverage just to save money. A bare-bones policy may not protect you if you actually have to make a claim. Worse, many policies have “coinsurance" clauses that may lead to only a partial payment if the insurance company determines you were underinsured. Be sure you know what your insurance covers, and ask your agent for clarification as you need it. When your policies come up for renewal, check out the competition and make sure you are still getting the best deal for your business. If you do have to make a claim, be sure to provide complete and accurate information, file your claim right away, and consider seeking legal advice if your claim is denied. By evaluating your risks, choosing appropriate coverage, and staying on top of the claims process, you will help ensure that your business has the protection it needs when it needs it. Need help building your business? Check out these special offers on small business solutions from LegalZoom’s trusted partners. From bank accounts and point of sale systems to business insurance and licensing, LegalZoom’s partners can help you turn your big idea into big business. Can all business risk be insured?"All risks" refers to a type of insurance coverage that automatically covers any risk that the contract does not explicitly omit. For example, if an "all risk" homeowner's policy does not expressly exclude flood coverage, then the house will be covered in the event of flood damage.
Do all businesses need insurance UK?Most types of business insurance are not legally mandated in the UK, with the exception of employers' liability insurance. You might need employers' liability insurance by law in some circumstances, and you can be fined £2,500 for every day you don't have the required cover[1].
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