In the business world, anticipating is an advantage. In this sense, insurance is not simply a legal obligation or an inevitable expense: it is a powerful risk management tool. It protects your business against unforeseen events, provides financial stability and, moreover, can become a very valuable incentive for your staff.
Whether you are starting as a freelancer or managing an SME with several employees, knowing the right insurance will help you make more strategic decisions. Some are mandatory by law, others are highly recommended. And several of them can even form part of benefits in kind, as a form of emotional salary, improving the work environment and helping to retain talent.
Insurance that every company should have:
Accident insurance according to collective agreement
When a company is subject to a collective agreement and has employees, this insurance is mandatory in many cases. It covers compensation in case of accident, disability or death of a worker. Ignoring it represents a serious financial risk, as the company would directly assume the costs.
Civil Liability Insurance
Essential to protect personal and business assets against damages that your activity may cause to third parties. From a professional error to an incident at your facilities, this policy helps you respond legally and economically to unforeseen events.
Multi-risk premises insurance
Whether you operate from an office, a shop or a workshop, this policy covers theft, fires, material damage and harm to third parties (for example, neighbors). It is a shield that guarantees the operational continuity of your company in adverse situations.
Insurance that adds value: protection and emotional salary
In addition to recommended insurance, there are other policies that not only help reduce risks, but can also become a benefit for your staff and a way to add value, for example, offering these coverages as part of the compensation package that also reinforces workers’ motivation and commitment.
Health insurance
A classic of emotional salary. Having private medical insurance allows your employees to access fast, quality healthcare. For freelancers, it also means additional peace of mind and can be tax-deductible in the income tax return. In the case of companies, the cost is also deductible in Corporate Tax.
Collective accident insurance
If your company is not subject to an agreement but you want to protect your team, this policy is ideal. It covers all workers during their work activity and sends a clear message: in your company, people matter.
Life insurance
It is a form of financial protection against unexpected events. Contracting it as part of the compensation package can be especially valued by workers with family responsibilities. Moreover, it demonstrates responsibility and long-term commitment.
Why is insurance key in risk management?
Every company is exposed to different types of risks: operational, legal, financial or human. Insurance allows you to transfer part of that risk to an insurance company, which allows you to maintain economic stability in the face of a claim or adverse situation.
Having a well-defined insurance strategy helps you guarantee business continuity, comply with your legal obligations, improve corporate image, increase confidence of employees, customers and suppliers, or attract and retain talent through non-salary benefits.
In short, having adequate insurance is not an expense, but an investment in peace of mind and stability. Being clear about your legal obligations and anticipating possible risks allows you to focus on what’s most important: growing your business. On the other hand, they are a fundamental part of the business strategy helping to protect the present and future of your company and, even, turn them into a competitive advantage to attract talent and take care of your team.
At the Economic Office we encourage you to analyze your current coverage and design an insurance policy adapted to your activity, your risks… and your people.
Quick guide to mandatory (and recommended) insurance for your SME
Starting a business involves making many decisions, and one of the most important —although often left until the end— is having adequate coverage since no matter how much you plan, there are unforeseen events that cannot be avoided. And when that happens, having the backing of good insurance can make the difference between continuing or having to stop.
Being clear about which insurance is mandatory and which is advisable to contract according to your type of company will help you protect it. In any case, it will depend on the type of company, the sector you work in or whether you have employees under your charge. Below, we review the most relevant policies you should consider to be covered and calm.
Insurance required by law (and that you cannot ignore)
Accident insurance according to collective agreement
If your company has workers and is subject to a labor agreement, this policy is essential. It covers compensation in case of accident, disability or death of an employee. The amounts and coverage will depend on the agreement applicable to your activity. Omitting it can have serious economic consequences, since as an employer you would be the one to assume all costs.
Mandatory insurance for company vehicles
Does your activity involve the use of cars, vans or other vehicles? In that case, you must insure them like any other vehicle in circulation. The minimum coverage required by law is civil liability, although it is advisable to expand it according to the use and value of the vehicle.
Insurance that is not mandatory, but highly recommended
In addition to insurance required by law, there are others that can give you an extra security and peace of mind. They are especially useful in contexts where unforeseen events can paralyze your activity or directly affect your team.
Civil Liability Insurance
What if your activity causes damage to third parties? This insurance is your shield as it covers problems that may arise from errors or accidents related to your business. It is fundamental to protect your personal and professional assets, especially in sectors with direct interaction with customers or suppliers.
Multi-risk insurance for premises
Whether you have a shop, an office or a workshop, this policy protects your workspace. Fires, theft, damage to neighbors or stored merchandise are just some of the unforeseen events it covers. If the space where you operate is key to your activity, this is a policy you should have without hesitation.
Collective accident insurance
If you are not bound by an agreement that requires it, you can still protect your staff with accident insurance that covers eventualities during the working day. It is a way to take care of your team and reinforce your social responsibility as a company.
Health insurance
Ideal for freelancers and also for entrepreneurs with staff in charge. In addition to guaranteeing fast and efficient medical care, this type of policy can be an incentive for employees. And the best part: both freelancers and companies can benefit from tax advantages when contracting it.
Life insurance
It’s not pleasant to think about it, but it’s necessary. If you have people in your charge —whether family or partners— life insurance guarantees economic compensation in case of death. It is a way to protect those who depend on you and ensure certain economic stability in the face of the unexpected.
In short, having adequate insurance is not an expense, but an investment in peace of mind and stability. Being clear about your legal obligations and anticipating possible risks allows you to focus on what’s most important: growing your business.
Do you have doubts about what insurance your SME needs? At the economic office we help you make informed decisions to protect your company from day one.
