How Important is Business Insurance?

For many companies a good business insurance policy is essential, if not legally mandatory. But is it just something that costs money and brings you nothing in return?

Any working environment that involves contact with people needs a policy which covers any accidental damage or injury. As would be expected from insurance, it has the capacity to protect the company or individual from potentially costly unforeseen scenarios. However, the presence of some policies can be leveraged for marketing purposes.

A business insurance policy is effectively a guarantee that a service will not jeopardise safety and security. In the event of an incident incurring loss or damage to customers’ goods, the safety net would be an entitlement to the agreed value of that item.

Adding value to the business

Imagine for example, you have an antique painting that needs to be professionally restored. This painting is 150 years old and has sentimental, artistic and historic value. You are more likely to use a restoration company that advertises a policy covering damages and losses of up to £100,000. Everything has a value, and with a value comes a risk that the item is lost or damaged.

It may be the case that a company is so good in their field of work that they have never had the need to claim on such a high level of insurance, but it is an extra level of peace of mind for the customer. In this respect, business insurance can act as a promotional tool. Customers are more willing to choose a brand which can boast such a guarantee.

In the logistics industry the basic premise is to store or transport someone else’s stock. There is a certain amount of trust that is afforded to the haulier or warehouse, that the working conditions are conducive to safety and security. There is very little value in using a third party logistics company that does not assure you a certain level of inventory protection.

Here at NX we have a flexible approach to insurance, meaning that goods of all types and value are covered. Our business relies on the concept of peace of mind. After all, our customers are placing their valuable stock in our hands and it is our job to ensure the stock retains that value.