Why do businesses need insurance?

Risk Mitigation and Financial Protection

Operating a business involves uncertainties like accidents, property damage, or legal liabilities. Insurance acts as a safety net, covering the financial repercussions of unforeseen events such as compensation for injured employees, repairing damaged property, or legal fees, helping businesses navigate challenges without facing crippling financial losses.

Legal Compliance

Businesses need insurance in the UK to fulfill legal requirements and obligations, such as mandatory employers’ liability insurance for those with employees. Non-compliance can lead to severe penalties and legal consequences. Having the necessary insurance policies in place not only adheres to legal requirements but also demonstrates responsibility towards employees and the community.

Business Continuity and Resilience

Disruptions like natural disasters can halt operations and impact revenue. With the right coverage, businesses can recover more swiftly, obtaining financial support to repair or replace damaged assets, resume operations, and meet ongoing financial obligations. This resilience is crucial for sustaining long-term business success, especially in the face of unexpected challenges.

Tailored Coverage for Specific Business Needs

Every business faces unique risks based on its industry, size, and operations. Insurance allows businesses to tailor coverage to their specific needs. Whether it’s professional indemnity insurance for service-oriented businesses, property insurance for those with physical assets, or cyber insurance for digital risks, a customised insurance portfolio ensures comprehensive protection.

What type of insurance do businesses need?

There are a various types of insurance cover that protect against different things. It’s generally agreed that the following are the best for small businesses and contractors but your insurance provider can offer more specific advice.

Professional Indemnity

Professional indemnity insurance can help protect a business if a client claims there’s a problem with the work that’s been done. It can cover the costs of compensation to correct a mistake or settle a claim, and covers the cost of the legal defence.

Professional indemnity insurance can provide invaluable cover to businesses providing professional advice or services to clients which could be challenged.

Public Liability

Covers a business if someone else is injured, or property is damaged as a result of its actions.

Public liability insurance protects against the cost of any claims from third parties, such as compensation payouts and legal costs.

Employer’s Liability

Covers a business against claims from employees. All employers are required by law to have this in place at a minimum level of cover of £5,000,000.

Fee Protection Cover

Fee Protection Cover protects a company from additional costs incurred on professional fees in dealing with an HMRC enquiry (including IR35 enquiries).

Preferential Insurance Rates

When you sign up with Vantage Accounting, you’ll get preferential rates with a choice of insurance partners offering contractor-specific and general packages. This could be Professional Indemnity, Public Liability, Employers Liability, cyber cover or even general office insurance. And all new clients get their first 3 months of Fee Protection Cover for free.

Use our bespoke links for a Vantage Accounting discount with:

Get 10% discount with Qdos

at checkout with code VANTAGE10

Get in touch

For a free consultation and quote, get in touch and we’ll find a spot in your diary for a call/zoom/face to face meeting:

Contact Form

What services are you interested in?
Do you use any accounting software?
This field is for validation purposes and should be left unchanged.
Xero Gold Partner
AAT Accredited
ACCA Approved Employer