Nothing is likely to dampen the spirits of a young entrepreneur than the thought of having to fork out for costs he thinks are unnecessary or just a luxury he can pick up later. However there are many occasions in a business year when certain policies are absolutely essential and worth far more than the rather paltry sum they cost at the start. Take financial risks in the case of setting up a local festival or wedding event from which fees from customers will be forthcoming. Any adverse weather conditions or riots in a nearby town will scupper the event and any outlay that has been made or contracted for will be lost – however if the business owner has taken the precaution of paying out for a all cover risk policy, he should be covered for all the the items he has already committed funds to and the business will carry on. There is also the small matter of public liability – this is essential but not actually a legal requirement. It covers cases where a client, supplier or member of the public claims against the business for injury or damage caused to them by the business activities. When you consider all the possible things that could happen, a member of your staff poisoning a customer by mistake, or knocking over a ladder on someone else’s promises and smashing into much prized ornaments or awards . . . The premiums of the insurance up front would be a pittance compared to the damage to the business reputation and bank balance. some accidents or events are so unexpected that you cannot imagine them happening, but as is borne out by daily news coverage, the most horrific and unexpected things do occur. Business continuity covers for interruption to daily business activity in the case of lost income or disaster or unexpected disruption that temporarily forces your business to close it’s doors.
There is also professional indemnity insurance that at first seems like another luxury, but if a client or supplier feels that your business has not complied with the remit or has given bad advice or cost them money by supplying the wrong goods or just badly made version of what they thought was being supplied, then the claims against the business could kill it off completely without access to legal assistance and a means to restore the business reputation.
