Importance Of Insurance While Starting Up New Business
These days we are hearing the word “start-up Britain” many a times may be the reason is recession that has let many people to look at the other way of taking asides themselves financially. Those days have gone when we used to say, “job for life”- Not today, one is lucky if having job for a fixed period of time of contact. People doing job may not receiving bonuses due to obvious reason: recession.
Many people are facing unemployment and are unable to find work; they have decided to start up their own business. Britain has now thousands of small businesses, many of those are being running from home.
It’s not easy to start a new company; basically it is hard because one is not receiving regular salary as it was before and depending on trade. There are more outgoings in the first year or so, but if you are sure that you have enough savings or loan available those early months are easier to bear.
You might be very conscious and try not to do unnecessary expenditure in early months, as you may use cheaper supplier and it is not good business sense to leave your business uninsured.
There are a lot of types of insurance for business available they are: as public liability insurance, employers’ liability insurance, business property insurance and professional indemnity insurance.
The monthly cost of the premiums is small and the potential outcome of being take legal action as uninsured is very indeed. If you were take legal action by a member of the public who slipped on your shop floor, for instance, you would potentially have to pay a considerable sum (perhaps tens of thousands of pounds) in compensation plus legal costs incurred by you and by your customer. If that happened and you didn’t have public liability insurance in place, that money would have to come out of the business assets or from your personal assets.
If you fail to pay, you might charge under CCJ (Country Court Judgment) registered against you that will put your business in more trouble.
You should prepare business contingency plan if you are start up small business about event in fire, theft, flood or compensation claim. You must cover your business in every way and make sure that the insurance policies which you are using is performed to be continue and valid.