Running a small business is engaging and enjoyable. We love the game, what we do, the people we meet and the buzz of being rewarded by our customers when they pay us.
It is so easy to forget that things can go wrong, and usually it won’t be our fault.
Suppose we might make a mistake which costs our client money. It does happen as no one is perfect, however much we guard against errors. Human nature being what it is, a customer might think we have made a mistake and cost them money, when we have not put a foot wrong. Either way, we need to be insured against action against us. Otherwise a vindictive client entirely in the wrong can cost us a lot of money and ruin our business. Professional indemnity insurance is essential and public liability insurance is important too.
Then again, how well are we insured against damage to our premises? Is our insurance up to date? Do we insure against loss by backing up all our data off-site?
Suppose our key staff have health issues and are off sick for a long time. What if we get sick and need to take time off? Are we insured to hire substitutes? Is our business income insured? Is our health insurance up-to-date?
Being insured for every eventuality sounds expensive, but when we think of the alternative of disaster and poverty we should grit our teeth and pay our premiums. Do you pay yours?