Why do companies need insurance?

The majority of businesses will require some sort of business insurance policy. The cover you take out depends completely on the nature of the business and the everyday activities involved in the industry.

The purpose of insurance is to cover your company in situations you cannot afford: for example, if an employee claims compensation, or your company accidentally causes severe damage to a customer’s property. Ensuring you have the suitable cover means the insurer will pay out up to the amount specified in the agreement. Insurance is particularly important for small companies who could risk going bankrupt if someone were to make a large claim against the company. Always make sure you have the appropriate cover for all your business activities.

How much does insurance cost?

The cost of insurance largely depends on the nature of your business and the type of cover you require. Obviously, the higher the level of cover, the more you will have to pay for your policy. The insurer will anticipate the likely situations your business could encounter and the risks involved to decide how much they require you to pay each year.

What types of insurance are available?

There are a number of different types of insurance policies available and some of these are mandatory for many businesses.

• Employers’ Liability Insurance
• Motor Insurance
• Professional Indemnity Insurance
• Building and Contents Insurance
• Insuring people related to your company
• Liability Insurance

Consequences of not being insured

There is the possibility that you may have to pay out large sums of money that you cannot afford, or even have the threat of being fined or shut down by the Health and Safety Executive.

Help is at Hand

At NatWest, our insurance products can be tailored to provide your business with the protection it needs and can provide you with 24-hour emergency service help for urgent problems and up to 20% No Claims Discount.

For more information on NatWest Insurance services, please visit natwest.com/business.