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Business Setup & Legalbeginner

Business Insurance

Definition

A range of insurance policies that protect your business against financial loss from unexpected events, public liability, professional indemnity, product liability, and cyber insurance.

Why it matters

One lawsuit, accident, or data breach without insurance can destroy a business that took years to build. Business insurance is cheap relative to the catastrophic costs it protects against.

Example

A customer claims your product caused an allergic reaction and sues for £15,000. Without product liability insurance, this comes out of your personal finances. With insurance, your insurer covers it.

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