5 dangers of being underinsured as a designer
As a designer, protecting your business and livelihood is essential. One way to do this is by purchasing business insurance.
Unfortunately, many small business owners, including designers, may not see the value in investing in business insurance or simply believe ‘it will never happen to me’. They may believe that it's an unnecessary expense or that they can handle any potential problems on their own. However, not having business insurance can be incredibly risky, and the consequences of being uninsured can be devastating.
Here are just a few examples of the dangers of not having a set of business insurances:
- Legal liabilities: If a member of the public or a staff member is injured whilst you are undertaking your business practices, you could be held liable for their injuries if you are shown to be negligent. Without Public and/or Employee Liability insurance, you could be facing costly legal fees and damages. If you have employees, with few exceptions, it is the law to put in place Employer’s Liability Insurance.
- Loss of assets: If your business experiences a natural disaster, fire, or theft, you could lose valuable assets such as equipment and materials. Such losses could have a serious impact on your balance sheet.
- Reputation damage: If something goes wrong, whether it's a legal issue or a product defect for example, it can damage your reputation and lead to a loss of customers. Professional Indemnity Insurance can help protect your reputation by covering the costs of damage control by employing a suitable PR company. (Where your policy provides such a benefit).
- Loss of Customers: If you don't have business insurance, you may lose customers concerned about working with an uninsured company. Many businesses, especially larger ones, will only work with vendors who have insurance coverage and are able to provide evidence of such.
- Lack of security: Not having business insurance can make it difficult to secure loans or investments, as lenders and investors may view your business as a risky investment.
Overall, the insurances you purchase are there to protect you and your business from a financial impact. You could be on the hook for significant financial damages if something goes wrong, whether it's a natural disaster, an accident, or a lawsuit. Without insurance, you'll have to pay for these costs out of pocket, which could cripple your business and put your livelihood at risk.
It's worth taking the time to research and talk to experts who can help find the right coverage for your needs.
That's where MFL can help.
Our experts can guide you through the process of arranging the appropriate insurance for your circumstances and risk appetite.
When you purchase our bespoke Professional Indemnity Insurance, you also have access to
- Free contract vetting service – Review contracts to ensure they don't impose obligations which may not be covered by your professional Indemnity insurance.
- Free Legal helpline - Provides fast, efficient telephone assistance for one-off queries relating to the conduct of your business.
Don't take the risk of not having business insurance – it's really is better to be safe than sorry. Contact us today to find out more