If you are the owner or director of a small business, there are many things you will have to think about and deal with on a day-to-day basis. It may feel as though you never have a moment to spare. However, it is important to bear in mind, there are numerous risks associated with running a small business – risks that, if neglected, can have a serious impact on the future of your firm.

Here we take a look at each of these small business risks in more detail and highlight how, if the worst was to happen, small business insurance can help to protect you and your business assets. 

1: Unexpected staff illness  

Staff are integral to the success of your small business; without them, the work simply wouldn’t be completed. If a key partner or particular employee was to suddenly fall ill, their absence – whether temporary or permanent – could put a significant strain on the day-to-day running of your company.

This is why it is a good idea to invest in small business health insurance. Such insurance policies are intended to look after the health and well-being of your valued employees. Rather than joining a lengthy NHS waiting list, they will gain quick access to private medical treatments and they don’t need to worry about the cost. The aim is to simply get them back to work as soon as possible.

Small business health insurance has been shown to significantly reduce staff absence and, by demonstrating your commitment to their welfare, it can also help to improve staff retention rates. 

2: Customer complaints

No matter how hard you try to provide a flawless service,mistakes are bound to occur from time to time. In such circumstances, unsatisfied customers can file a complaint and make a claim, and these claims can have a serious effect on the long-term survival of a small business.

Human error may be unavoidable; however, you can easily avoid the repercussions of these errors with small business professional indemnity insurance. Whether you’ve given bad advice or breached intellectual property rights, this type of insurance will cover any monetary loss that has been suffered by the client – therefore giving you the peace of mind that your business is protected.

3: Damage to your premises

Accidents do happen and if your premises are damaged in some way, this can lead to very expensive repair and replacement costs. It may be a while before the building is up-and-running again; which means, you may have to find an alternative building or cease trade in the meantime – and, of course, such measures can have an incredibly negative impact on the progress of a small business.

This is where commercial property insurance comes into play. Policies tend to cover a wide range of issues, including everything from fire and water damage to theft and vandalism. This type of small business insurance will cover any repair costs and it will also fund legal expenses if necessary.

4: Public injuries and accidents

If your small business deals with the public in any way, there is always a risk that at some point, someone will attempt to sue. Perhaps they fell and suffered an injury whilst visiting your business; the chances are, they will want compensation of some sort and such unexpected expenses can have serious consequences for you and the long-term success of your business. 

It is, therefore, a good idea to invest in small business public liability insurance – covering both incidents that occur on your premises and other locations from which you regularly work. When a claim is made, you can rest assured, you are ready to deal with it in a professional manner and it will have no financial impact on your business.

5: Official staff complaints

As a small business owner, you probably deal with small human resource matters on a day-to-day basis. But what happens if a member of staff files a serious complaint? Perhaps they have been harassed in the workplace or they feel they have been unfairly treated. Employment tribunals and court cases are often very expensive, and they can have a highly damaging effect on your business.

One way to protect against such risks is to invest in small business directors’ and officers’ insurance. If a complaint was to be made and taken to court, the insurance would fund legal representation, the settlement fee and any other related costs and your business will be able to continue as usual.

Where can I buy small business insurance?

If you would like to protect your small business from the risks outlined above, small business insurance is a fantastic place to start. Here at Rigby Financial, we demonstrate a significant level of experience in this area. Our experts understand that every company is unique, and they will help to devise the perfect small business insurance plans for you and your business requirements. 

Find out more about the small business insurance policies that we currently have to offer, please feel free to give us a call on 01744 886077.

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