As anyone who has ever needed to claim on their insurance (for anything!) know, you don’t need it until you need it. And when you do need it, boy are you happy that you have it.

When it comes to your business, it’s even more important that what you have is right. The last thing you want is it dutifully pay the premium; think you have cover in place and then find out you don’t get the pay-out you are expecting at the end of it all.

There are two main forms of business insurance covers, contents insurance to cover stock and equipment, and buildings insurance to protect you from damage to the building itself. There are other types of insurance such as the ones for IT systems in case a cyberattack happens, or a scam, employee insurance to cover against accidents or death, or vehicle insurances. Some businesses provide life insurance for employees as an extra.

Why does this matter to SMEs?

Whether you already have insurance coverage or are looking at one for your business, we recommend you check if it meets your business needs and what the limits are. Many insurance companies offer packages with different insurances, while others sell each policy separately. Choosing the right policy can save your business money in the long run.

It is worth remembering that any insurance policy is likely to include exclusions, such as deliberate acts, or litigation and legal expenses, so try to work out if you have the cover you will need for all possible claims in the future.

For anything related to Accounting, AIMS is available locally across the nation. Please get in touch with your local accountant for more information.