Seeing that every small business owner should be aware start up expenses will always be a significant factor and chiefly after a company first begins trading you will need to control costs efficiently and ensure that the company gets value for all funds invested.

It should be against this backdrop that a great many new business owners disregard insurance as an avoidable cost as well as a financial burden to a small business. This can often be economic foolishness and in a number of cases actually illegal.

For the majority of small businesses the price of an suitable insurance policy cover is really relatively rather insignificant and offers such a considerable amount of safeguard for the business that the business proprietor should be in fact well advised to adopt the protection.

The types of cover which are required for the small business very much depends upon the business activities or trade of the company or individual and the evaluation of this can be undertaken by the company owner or else frequently, and more advisably, an insurance adviser ideally a professional insurance broker.

Specialist commercial insurance agents are comparatively simple to find seeing that they are extensively available across the web. Many offer on-line quotation services for a variety of standard products however the specialist business insurance adviser will offer an advisory service from which you will be able to get independent cover advice that is matched to your business.

As mentioned earlier there are some business insurances that are actually mandatory being required by law.

Firstly, there’s obviously, motor insurance in respect of any car or vehicle that is owned or operated by the firm. Whilst this may be a statement of the obvious, it’s obviously crucial that you include this as the cost of the insurance should be a part of commercial budgets.

Secondly, all businesses that employ people in the United Kingdom are required by law to carry an employers liability insurance policy. This protects the insured against claims from employees in respect personal injury or property damage sustained in the line of their employment. Similar legal requirements exist in other places including the USA where workers compensation is usually a state requirement in all states.

In the United Kingdom the lawfully required minimum level of cover is five million pounds although in practice insurers issue insurance policies with a minimum limit of ?10 million pounds.

In order that the small businessman can make an evaluation of what insurances are appropriate and which of them are being bought it is important to appreciate the actual nature of what insurance actually is. This will likely seem obvious but lots of people don’t even have a practical understanding of what insurance is.

Insurance is at its most simple a risk transfer means. Accepting that businesses confront risks on a daily basis, and these may be threats to property owned through the businesses, claims of negligence against the company by third parties or claims from workers the company operator can decide to face these risks to their business, except for wherever such insurance is a legal necessity, and not cover in respect of these risks.

The more wise company owner will identify these risks, perhaps with the assistance of an insurance broker, and decide to transfer these risks to a business that specialises in accepting these risks i.e. an insurance company.

Thus by payment of the premium the risk is transferred to the insurance company who, at least in theory, is much better prepared to face these risks.

So with an understanding of the basic background of insurance and its purpose, you should set about the process of identifying the hazards that your own company faces and deciding whether you are prepared to carry those risks or whether or not you prefer to purchase an appropriate insurance.

Then make a decision whether you would like to undertake this review yourself of whether or not to engage the services of an insurance expert that might prove to be the more competitive choice.

Blackfriars Group is a specialist commercial insurance broker providing instant on-line quotes for commercial insurance services for a wide variety of businesses and offering first class services in start-up business insurance.