Why business innovation and insurance go hand in hand

A survey at the end of last year suggested that 73% of small businesses owners in the UK felt more optimistic about the future than they did at the start of 2015 and that prospects were looking bright.

It seems that despite some inevitable challenges, British SMEs feel there is every chance they will flourish in the year ahead. Small businesses have always been the lifeblood of the British economy, driving innovation and creativity – two qualities our tiny island nation is internationally renowned for, and which have historically helped us to punch above our weight on the world stage.

British creativity

One only has to think of the Dyson vacuum cleaner and hand dryer, designers like Sir Terence Conran or the groundbreaking pop music of the Beatles or David Bowie. The list is endless. All these examples are the envy of the world and are perceived as being uniquely British.

However, innovation isn’t possible in business unless you know you have the risks covered as thoroughly as possible. No one can afford to take risks if they know that one setback could easily cause them to lose everything. That’s why Great British innovation is supported and made possible by Great British insurance.

An essential safety net

Whether you offer professional advice or produce a product, to protect your business and support your innovation it is best practice to take out insurance. While most businesses will require cover for employees, premises and business contents, final requirements are likely to differ from business to business.

• Advice, Service or Design – Businesses operating in these fields will require professional indemnity insurance which provides protection against some of the possible consequences of taking business risks. Anyone involved in design, providing a service or giving professional advice of any kind will need indemnity insurance if they’re thinking of branching out in unorthodox or untested directions.
• Production of products – When producing a product the major risk is the product not working and causing injury or damage to third parties. Products liability provides compensation for injury or damage caused by the product. Dependent on the product you may also want to purchase product recall which will support the costs of recalling the product and PR support to reduce the damage to your image.

There are several other options dependent on the structure of the business and its operations:

• Directors’ and officers’ insurance – protects a company’s management personally for legal claims made arising from their decisions. A bold new direction may not be immediately profitable and in extreme cases shareholders could take legal action against a maverick director.
• Intellectual property insurance – innovation often means you’re first to market with a new product or idea. IP insurance allows you to protect your ideas, trademarks and patents and provides legal expenses to challenge any infringement.
• Efficacy insurance – whilst products liability covers you if something goes wrong and causes damage. Efficacy covers the costs you incur if your product does not perform as it should e.g. a security alarm is installed and doesn’t go off when a theft takes place.

Allowing you to take calculated risks

Alan Boswell Group can arrange all forms of business insurance at competitive rates. We can put together a bespoke package tailored precisely to your needs and future plans. We also offer a risk management service to make sure your company is compliant with all current health and safety requirements and regulations.

Small businesses looking ahead to 2016 know they need to innovate and take chances in order to stay ahead of the game. Alan Boswell Group is proud to help make this possible. We’re behind British businesses all the way!