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If you were to ask any aspiring businessmen and women if they have insurance cover it is estimated that more than half of the people would nod their head whilst stating ‘no’! This is an automatic response because they realise they should have, hence they nod, and yet they openly admit that they don’t have insurance!

All very mind boggling and yet in reality there are many businesses which either do not any insurance at all or have inadequate cover. The realisation that not to have insurance is a poor business practice, and yet like many things people face if they are unsure or in doubt they put their thoughts ‘on the back burner’ and move to another pressing concerns.

It is understandable that whilst you are setting up a new business there is a lot of investment that needs careful consideration. In a situation like this, a commercial insurance policy many look like a luxury. This is a very wrong notion. People forget that just by saving that annual premium money they actually are exposing themself to losing almost everything that they are staking while starting their new business. It is ironical that despite the risks associated with a new businesses people cut corners on the risk management through not having any or sufficient insurance.

For that matter not only the aspiring businesses, the established multi national companies also insure any projects where high investments are involved. Therefore, if companies of that stature realise the risks of not having insurance, small or a medium scale business which does not have insurance may be considered as naive stupidity.

Following is what you could deprive your business of by making the decision not to take out a commercial insurance policy:

* You will have no insurance cover to protect you for what you are reliable for as an individual or an organisation. If you have employees working for you, their liability pertaining to your business requires by law to be covered under an employer’s liability insurance.

* It may be part of the terms and conditions of a loan, whether that be for necessary overheads, the premises or required for rented property.

* Accidental mishaps, injury to the public, fire, theft, damage to goods, in fact anything pertaining to the business would have no cover. Which means any one of these eventualities would have to be paid for by you.

The list is not exhaustive as each commercial business will have its own specific insurance needs.

If you are to be successful and thrive in business, cutting corners on the amount of insurance cover you have is definitely not a wise decision. If you want to be an astute business person you should be looking at risk management, which is all about looking at ways to reduce or eliminate possible risks. This is not only good business practice, it will also help you to identify all risks which should be included within your commercial insurance policy. Reducing the risks associated with your business will also help to lower the cost of the premiums.

For more information about Commercial Insurance visit the Flint Insurance website.

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