The main risk of not getting insurance for your business is that you could go out of business.

If there’s one thing we’ve all learned in the past 18 months it’s that we really can’t predict what’s going to happen in the future, and that we need to be prepared for anything in our businesses.

All it takes is one accident, one injury at work that leads to a claim, one customer injury from a product, or one theft and a business could quickly be facing the end of the line without the safety net of insurance.

Not having business insurance in place from day one can have hugely negative results in the future if the unexpected happens.

But many businesses, especially in the early days, forgo insurance, many with the belief that they’re simply “too small” to need it.

Other companies reject the idea of insurance because they don’t believe they need it and could survive an event in the future through emergency funds, others simply don’t even consider insurance at all.

But if you think about it.

Could you really replace your stock if it was lost to a fire or damaged by flooding?

Could your business’ finances withstand a compensation claim with legal costs and a potential payout at the end?

Business insurance isn’t an easy thing to navigate on your own. There’s lots of different types of insurance for one thing and not every business might need them all.

But if you’re planning your business’ future, looking at insurance covering claims, injuries, damage and lost stock are critical as part of that future.

So what kind of insurance can you get as a business?

Employers’ liability insurance

If you’re a business operating in the UK with employees, then this is a non-negotiable type of insurance.

You have to have it by law and you could be liable for a fine if you’re found not to have it.

It doesn’t matter if your employees are only temporary.

Employers’ liability insurance covers your business against claims for compensation for work related illness or injury.

If an employee does make a claim, your insurance will help you pay your legal fees if you contest, and could also help cover the costs of any payouts.

It’ll be a short-term hit to your business, but at least you know your long-term financial future remains stable.

Public liability insurance

Most, if not all, businesses come into contact with the public at some point.

And you need to be covered in case a member of the public claims for injuries caused on your premises or as a result of the work you’re carrying out.

Again, this will cover your fees and can also help with payouts if a claim is successful.

Product liability

Whether you make your own products, or you buy them from a third party and resell them, you need to have cover in case a customer is injured as a result of using your product.

You might think that because you didn’t manufacture the product the liability can’t land on you, but as the final supplier it does, and you need to be ready.

Cyber insurance

Any business with a website is a potential victim of cyber crime.

Plus, because data protection is much stricter today and regulations like the General Data Protection Regulations impose massive fines for data breaches, it’s important you cover yourself in case you become the victim of an attack.

Now if you’re a small business you might think you’re too small to be targeted.

Why would a hacker come after you instead of a multinational corporation like a bank?

And that’s because most small business owners don’t understand the risk they’re facing. Most hackers won’t attack a small business one at a time. But they have programmes in place which allow them to attack thousands, even millions of small businesses at once.

This means your business is just as much at risk, and potentially more so given that you likely wouldn’t have the same level of cyber protection as a larger company.

Protecting yourself from the worst case scenario

Businesses face uncertainty from all directions every day.

Dealing with the public, staff, making sure products are getting where they need to be, investing in and maintaining new tools and equipment and maintaining a presence online.

It’s a lot to manage.

And all it takes is for one thing to go wrong one time, and a business’ future is instantly at risk if they face legal fees or compensation payouts.

That’s not even to mention the risks from unexpected weather events, risks from fires or even the risks from criminals looking to make easy money at a businesses expense.

Without insurance, any event that you weren’t expecting can instantly put your financial future at risk.

We’ve seen in 2020 and the start of this year that you need to be prepared for anything as a company, no matter what size.

Business insurance can’t stop the worst things from happening to your business, it at least provides some peace and presence of mind that you’re protected if they do.