Four Key Insurance Covers Every Business Owner Should Consider

Running a business can be expensive, but the last thing you want is to lose everything you own due to forgoing adequate insurance. After all, just one foresight could lead to you losing everything, or worse – it could lead to bankruptcy. So whether you own a retail outlet, a pub, a small business, or a service firm, keep reading for a list of four types of insurance that you absolutely must consider.



Property insurance will cover the building that you own as well as any items contained within it. When taking out this type of insurance, you will be asked to make a list of everything your business owns and its cost. Whilst you may be tempted to say that something costs less than it does, remember that if you do need to make a claim, you won’t be able to claim for anything more than you originally quoted. Cover for your property will usually also cover you for things like theft, fire damage, flood damage, and accidental damage, though make sure you read your policy’s wording to find out just what is included.

Loss of Profits

This is one type of insurance that many business owners forego, but it is definitely worth considering. For example, say that your business is unable to operate due to fire or flood damage, and your insurance adjuster doesn’t believe it will be able to reopen for six months – that’s six months in which you are unable to trade, but you may still be expected to pay for things like rent, wages, and utilities. A loss of profits insurance policy will cover you for these situations, so consider the implications of not taking it out before deciding against this policy.

Liability Insurance

If you employ people, it is vital that you take out liability insurance. This type of insurance will cover you against any claim made by your employees for injury, damage, or loss. It will also cover you in case a client or customer makes a claim against your company. The minimum amount of cover is usually $5 million, but you may want to look for policies that cover you for more. In this day and age, many solicitors are encouraging people to make claims, so it’s not a form of insurance that you can afford to ignore.

Personal Cover

Finally, you also want to consider taking out some personal cover that will protect you and your business should you fall ill and be unable to work. This type of insurance will ensure that you have access to money if you are unable to work, and the premiums will vary depending on how often you will need to get paid, and how hazardous your current job is (a high rise window cleaner will have a higher premium than a work-from-home copywriter for example).

Although some business insurance policies will cover everything mentioned above, it’s vital that you read the small print so that you know what is and isn’t included. Don’t forego insurance and end up losing your company – it’s not worth the risk.