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Insurance Cover for Growing Businesses - What do you Actually Need?

When you first launched your business, it’s fair to say that you set out to be successful for a sustained period. Success provides growth, which has its own set of challenges that need to be considered differently. Your evolved business will present new circumstances where insurance plays a big part in reducing and managing new risk exposures.

Insurance programs which were adequate when you launched, will no longer be sufficient to reduce or manage your risks. In fact, not having the correct insurance, or indeed being underinsured, can leave your business open to litigation or worse, being financially crippled. So, what type of insurance do you need for your growing business?


Professional Indemnity Insurance With the growth of your business, you might find that you are gradually providing more and more professional advice to your customers, including product information. For some businesses, however, their mainstay is actually providing professional advice, such as accountants, lawyers and engineers, and they would already have Professional Indemnity Insurance. For others, who provide casual advice to customers, insufficient insurance cover can leave them wide open to litigation and substantial legal costs. This is particularly relevant as your business grows because you might not be aware that providing advice to customers can create the need for additional insurance cover or your existing policy to be upgraded.

Business Interruption Insurance As your business grows you should seriously give strong consideration to implementing this policy if you don’t already have the cover. This insurance is important as it will pay ongoing wages of key staff, overheads including finance costs and fixed overheads when you're out of action. Many insurers pay these claims monthly, so you can pay bills and keep the business open, while you get back on your feet. This is a policy that many business owners overlook when buying insurance cover for the start of the business. So as you update the insurances that cover the replacement cost of stock and equipment (i.e. in the case of a fire), you should relook at Business Interruption insurance.

Without business interruption insurance many businesses fail to reopen after a large fire or storm claim.

Cyber Insurance As your business grows, so does your reliance on emails, databases, websites and so on. Unfortunately, this reliance plays into the hands of cybercriminals who increasingly target businesses using viruses, ransomware and DoS (Denial of Service) attacks. Many growing businesses (including your key service providers) are extremely vulnerable to these attacks. Whilst you can put internal measures in place to reduce losses or minimize their occurrence, cyber hackers are often one step ahead. Cyber Insurance will help you to recover from these attacks, including rebuilding databases and removing infected software, as well as replacing lost income and minimizing the impact to your reputation.

Property Insurance You might purchase additional assets for your company as your business grows. This could include machinery, plant & equipment, or an office/ warehouse. This is a sound business strategy, however, when you become the owner of a property, you also need the right type of insurances to meet the requirements of your bank to reduce your financial risks. For example, as a property owner you will likely be responsible for the roof, as well as damage to the building caused by storms, floods or vandals. The costs of repairs for this type of damage can be substantial and Property Insurance can help to reduce your risks.

We applaud your efforts in building a successful business and recommend that you take the time to add insurance as part of your regular business strategy reviews. For help deciding what type of insurance policies are suitable for your growing business, talk to Risk Guidance Insurance today.

General Advice Warning The information provided is to be regarded as general advice. This type of insurance product is designed for small and large businesses, who want to be covered against financial loss of income to the business, following a fire, storm or other type of insured loss. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider relevant product disclosure statement(s) before making any decision to purchase this type of financial product.

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