How To Protect Your Business From Unexpected Costs

When it comes to running a business, budgeting is crucial. Knowing what’s going in and out of your accounts every month is a must, but what happens when you experience unexpected costs? Getting an online business degree can be an obvious place to start – learning the skills beforehand and being prepared can save you a surprising amount. A spanner in the works can be bad news for companies – especially start-ups and those trying hard to improve ROI (return on investment) after a quiet period – so here are some protection strategies that can help you stay on the right track.

  • Take out van insurance

Whether you’re an independent tradesman operating from a single van or a business owner with a large fleet out on the road, van insurance is designed to give you peace of mind. The right policy can help cover you, your van and the goods you carry, providing a financial safety net should an unforeseen event such as a theft or an accident occur. There are many different policy types available depending on your needs including Comprehensive, Third Party Fire and Theft and Third Party Only. Be sure to compare van insurance prices to make sure you get the very best deal.

  • Take out business car insurance

If you simply commute to and from work, the chances of you needing a special car insurance business policy are slim. However, if you regularly travel to business meetings or visit clients, then finding the right business insurance policy will give you peace of mind out on the road. 

Many people believe their standard car insurance policy will cover their business travel needs, but this isn’t always the case. In fact, if you have an accident while driving for work, your existing insurer might not pay out and that could put you out of pocket, so always read the fine print and get the right policy in place.

  • Carry out a business risk assessment

By law, all employers must carry out a thorough risk assessment of their business to help identify and control workplace risks. This helps to keep everyone safe and can prevent accidents, injuries and unwanted lawsuits which may put you severely out of pocket.

A good starting point is to walk around your premises in order to identify any obvious hazards. From loose wires to boiling tap water, all risks should be documented if you’ve over five employees and adequate steps must be taken to fix certain issues. Reviewing what you’re doing and identifying new risks on a regular basis can also help you to iron out issues before they turn into unexpected costs you hadn’t planned for. 

Top tip:  As well as carrying out a risk assessment, taking out employer’s liability insurance and general public liability insurance is also a necessity when running a company as this protects against third party injuries that occur as a result of a business’ property, products or services.

  • Regularly inspect all tech equipment

Many businesses these days are digital and thrive thanks to advanced tech equipment. This equipment can be costly. So, to avoid unexpected costs down the line, it’s a good idea to regularly inspect all machines and devices to ensure they’re working as they should. Spotting and fixing issues early could save you from more expensive repairs caused by ignoring problems.

Top tip: Don’t forget to update your firewalls and antivirus software to prevent malware from crashing your systems and disrupting your business flow. You should also make sure all staff members regularly change passwords to prevent unnecessary scams and hacking attempts which could again affect your ROI if successful.  

Running into unexpected costs is often part of business, but with proactive steps you can avoid any unwanted surprises.

Adam Hansen

Adam is a part time journalist, entrepreneur, investor and father.