Business insurance isn’t just for big name companies that employ tens or hundreds of people and regularly get caught up in legal wrangles. In fact, I would say that small businesses – which can run from a small garage with just two people working there, to a corner shop, to a single person business – are even more in need of insurance than large companies.

The reason for this: small companies don’t have legal teams. Think about what you would do if you were threatened with legal action as a result of your work – exactly whom do you go to for help? Solicitors and lawyers are notoriously expensive professionals to employ to represent you. In addition, you will need good legal advice, otherwise not only will you be paying legal fees you will have lost your case and will be paying out a cash settlement in compensation.

In the case of unexpected happenings that have not harmed anyone, but have damaged the business in some way and have made it impossible to earn money for a period, business insurance can help. It’s true that if you want to retain (insure) significant income for a (short) period without any actual income, you will have to pay a significant amount in premiums.

However, if your business relies on a steady cash flow, this can certainly be worth it. Loss of income can be disastrous for a self-employed person (self-employed people can also obtain small business liability insurance) that has dependants and bills to pay as well as business costs. Remember that when the business suffers due to unforeseen occurrences or accidents, it will cost time and money to set up again.