Business insurance "a matter of protection vs risk"

Business insurance “a matter of protection vs risk”

Small firms may be worried about the cost of business insurance, but one expert has emphasised that the investment in protection may outweigh the risks of not having a policy in place. Replying to a reader query, Steve O’Connor – who is the general manager of Creative HQ business incubator – commented that businesses may wish to start their insurance quest by drawing up a risk matrix.

He wrote: “Break risks from certain scenarios into categories, such as those relating to your team, finances, product, market, etc. Draw up a matrix with the likelihood of the scenario on one axis, and the severity of the impact on the other.” Mr O’Connor explained that evaluating risks in this way shows areas you are most likely to need insurance for and could give you a good idea of the type of policy you need.

Events such as a workplace accident, a fire or even a personal incident can all impact a business’ ability to run effectively and insurance should be in place to cover these unlikely – but potentially devastating – scenarios. Firms may also wish to consider a number of optional extras, he added, including debt insurance or income protection cover.

You may even find that some business package insurance policies can cover vehicles that are used primarily for business purposes. In any case, it is best to speak with a dedicated insurance professional, who can provide you with the best solution for your needs.

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