CHEF INSURANCE

ARTICLE - 5 major risks of operating a small business without insurance


published on: think-ins.co.uk By Moyan Brenn


To be a successful business in any field you must first have insurance cover in place. This will make sure that your assets, customers, workers and suppliers are protected should an accident occur.


Every business is at risk to the smallest claim, and if you are uninsured you may find your business is vulnerable to them. The risks you could incur start from financial losses and could escalate to legal trouble, which in turn would lead to more financial losses.


Protect Your Customers


With public liability insurance in place you are protecting your assets and your customers should they get hurt or be in an accident whilst in your business. Should they make a claim your business will be protected and your customer looked after.


Theft and Property Loss


All businesses have assets, whether they be stock to sell, tools and equipment, furniture or even the interior decorations. All of these will be at risk of theft, fire, general damage or water damage. Should they need to be replaced, it could be very costly. To make sure your business does not suffer have insurance in place so that your finances aren’t affected.


Breaking the Law


By law all businesses with one employee or more must have Employer’s Liability insurance in place. Running a business without this in place means you are breaking the law. Employer’s liability insurance will protect your staff, should they get hurt in an accident.


Loss of profit


Businesses without insurance cover are much more likely to suffer losses in profit as they are susceptible to financial risks. With insurance in place businesses are more likely to succeed. Some insurers even offer compensation for businesses that do not profit, should they have a valid reason.


Business Interruptions


If your business should suffer an interruption that causes your business to temporarily close or halt, your business will be losing profits. This could happen because of a fire, flood or electrical failure and might keep your front doors closed for an indefinite amount of time. Your business will then be unable to make any money, your staff will need paying and stock may expire. The business will need to pay for it all, whilst not making money. Should you have business interruption in place, you can claim compensation for these losses.​




Note: Members of The Chef Alliance are covered by Liability Insurance, which is included in their membership benefits.  For more information, please contact our Success Managers.