When you are running a business, it can often feel as though your margins are being squeezed year after year.
Seeing the costs of your supplies, subscriptions and other essentials rising while the prices you charge are being forced down is an understandable cause for frustration.
Those essentials could, perhaps, include corporate insurance – but, reassuringly, this is one area where it can be surprisingly easy to save money, provided you follow a few simple tips.
Scale down your office space
Do you really need that large office space for which you are probably paying a hefty rent for? Are large parts of your office often left sparse and unused? This could be a good incentive for you to shift your company to less expensive premises.
You could probably even start running the business from home, depending on the type of work you do. Consider that many tech repair companies are now willing to journey to customers’ homes to carry out fixes, while trade businesses like those in plumbing can be run similarly.
Running your company from home could enable you to trim your insurance costs, The Balance Small Business explains. It might not be the only way you could do so, however.
Carefully assess your insurance requirements
While working from home can suit some small enterprises, you might remain convinced that your business has outgrown your home. In that instance, your business could have many insured assets – in which case, you should check that you aren’t insuring assets you have actually relinquished.
Once you have determined how many of your assets warrant insurance, keeping those assets secure could remain a problem. Still, having fire alarms, sprinkler systems and security technology fitted in your corporate premises could help to make it less of a problem.
Acting on this advice could also lead your insurer to perceive you as a lower risk to them. Hence, you could be rewarded with lower premiums.
However, what if you have only recently started your business – so recently, in fact, that you have not yet sourced insurance for it?
What insurance do you need?
If your UK-based business currently employs staff or uses sub-contractors, then you are likely to legally require employer’s liability insurance.
Another important cover for companies like yours can be public liability insurance – which, though not legally mandatory in the same way as employer’s liability, can still provide your firm with a valuable financial safety net, so to say.
Let’s assume that you are a tradesperson such as a plumber or electrician. However careful you might be when providing your work, you can never wholly rule out the possibility of a potentially costly accident – like someone tripping over your tools, or you damaging a client’s house.
If you are thought at fault for the accident, you could be sued, but public liability could shield you from a heavy financial blow resulting from this. This sheds light on the importance of sourcing tailored public liability insurance for UK trade businesses.
More from ByteStart
ByteStart is packed with help and tips on all aspects of starting your own small business. Check out some of our most popular guides;
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- Guide to Intellectual Property Insurance for Start-Ups and Small Businesses
- What to do if Disaster Strikes Your Business Premises and You Need to Make an Insurance Claim
- How to Choose the Best Online Accounting Software for Your Business
- 10 Advantages Running Your Business as a Limited Company Has Over Being a Sole Trader
- How to Set Up a Limited Company
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- How to Get Funding Fast: The Quickest Routes to Finance for SMEs
- Finding Finance for Your New Business – Funding Advice for Start-Ups
- How You Can Use Asset Finance to Grow Your Business