When starting a company cost is always a major issue and it is a common error to dismiss new business insurance outlay in the early days as an unnecessary overhead that places a financial burden upon the business when it can least afford it.
Taking out an effective business insurance policy should not simply be a consideration of cost, but one based upon the risk factors facing the business and the downside of any claim that may occur.
Arguably in the early days of a business, it is most vulnerable to financial damage caused by an uninsured loss and the business, whether this be a sole trader, a partnership or a limited company could face an early extinction as a result of the costs of uninsured claims.
It is essential that any business owner or operator make a valued risk assessment of the potential losses it could incur and weigh these up against the cost of an effective business insurance policy that will assume those financial risks on behalf of the company.
The assessment of hazards facing the business are often split into two major areas; risks to the property owned or held in trust by the new business and monetary dangers facing the new business for example arising from losses in respect of legal responsibility or an interruption in the business because of property damage and the like.
In the case of small businesses, and many new businesses, it is claims in respect of legal liability that can present the most real and clear financial threat to survival with legal defence costs alone often running into thousands of pounds for even the most routine defence of a spurious claim.
The price of an effective liability insurance policy is in actual fact relatively small, certainly when considered against the downside of the costs of any action against the business if it does not have liability cover.
Property damage insurance is usually dependent upon the worth of the property at risk as a consequence of this direct association between value at risk and the cost of property damage insurance, it is often a much simpler consideration for a small business as the cost of not insuring tends to offer a clearer understanding of the risk factors posed to the new business.
The new business insurance market is a very competitive one, with many insurers offering a variety of contracts designed to deliver cost effective insurance cover to new companies. These deals can be found directly from insurance companies or from insurance intermediaries for instance insurance brokers and the majority are well represented across the web offering instant access to products and quotations, an incredibly useful tool in your business planning phase.
An insurance broker will commonly offer the policies from a variety of insurance companies whereas an insurer will only present their product.
The insurance broker will generally provide you with a range of quotes from different providers, along with the details of the cover and this can save you a lot of time in trawling through insurers sites looking for the right deal for you.
Blackfriars Group is a dedicated commercial insurance broker providing instant on-line quotes for business insurance services for a wide variety of businesses and offering first class services in start-up business insurance.