The Importance of Proof of Insurance
3rd Sep 23
Insurance where should we start!
In the continually growing world of e-commerce and online services, consumers and businesses alike are embracing the convenience and accessibility of online marketplaces.
These platforms connect consumers with a wide range of services, from wellness and healthcare providers to home improvement experts and beyond. However, amidst this convenience, there’s an important requirement that businesses in the wellbeing sector must and that is meet proof of insurance.
Here at Wellbeing Umbrella, we often receive inquiries about why businesses in the wellbeing industry must possess insurance to be featured on our platform. These queries typically reflect a mix of curiosity and occasionally, frustration. We completely understand people’s views, as we’ve been in the same position when seeking to join a platform or professional organisation ourselves.
However, now that we run a wellbeing platform with its associated responsibilities, we have a deeper understanding of the rationale behind this requirement. Some reasons are naturally just good practice and while others are straightforward measures to protect yourself in case someone decides to contest your actions.
So, whether you wish to join a platform like ours or remain flying solo, here’s six reasons why insurance is good for business.
1. Insurance Helps with Customer Protection
You’re in the business of making people feel safe and secure right? Well insurance provides a safety net for customers in case something goes wrong with your service or product. If a customer has a bad experience or suffers harm, they may unfortunately want to seek compensation from the business.
Proof of insurance ensures there’s a source of funds to cover such claims, protecting the customer’s financial interests. This isn’t personal to you, it’s a bit like car insurance and if someone bumps into you. You know the person didn’t mean to do it, but you’ll still need money to help you repair the car damage!
2. Business Credibility
For businesses, displaying proof of insurance isn’t just about meeting a marketplace’s requirement; it’s also about building credibility. It’s a way to show potential customers that you take your work seriously and are prepared for unforeseen circumstances. This extra layer of professionalism can be a powerful magnet for customers who are new, cautious and seeking a way to find trustworthy health and wellness service providers.
3. Insurance = Compliance with Legal Requirements
The location where a marketplace company is based significantly influences the extent of regulatory requirements regarding insurance that businesses on the platform must follow. Online marketplaces often enforce these requirements to ensure that the businesses on their platform are compliant with local laws and regulations.
This compliance is not just good business practice; it’s often legally mandated. In the UK there is no specific legal requirement. However, much like at Wellbeing Umbrella, a platforms own insurance may impose the need for store seller insurance requirements.
4. Insurance and Risk Mitigation
Online marketplaces themselves face risks related to the services and products offered by the businesses they host. Requiring businesses to have insurance coverage helps mitigate these risks. If a customer makes a claim against the marketplace due to a business’s actions, the insurance can provide a layer of protection for the platform.
5. Resolution of Disputes
Although we may not want them, disputes can and do happen in the wellness world. Insurance can help facilitate the resolution of these disputes, reducing the burden on the marketplace’s dispute resolution process. It covers the costs of mediation, arbitration or legal proceedings, ensuring a fair process for all parties involved. This naturally also keeps the cost of being on the platform down!
6. Reflect Professionalism
Finally, for businesses in the wellbeing sector, such as those offering health or wellness services, insurance is a mark of professionalism. It signifies a commitment to providing a high standard of care and reassures customers that their wellbeing is a top priority.
Hopefully we’ve been able to show that proof of insurance is not just a checkbox on an online platform’s application form. Instead, we hope we’ve highlighted that it’s a vital component for creating a safe, trustworthy and compliant environment. So, the next time you see a business proudly displaying its proof of insurance on an online marketplace, remember that it’s not just a piece of paper; it’s a symbol of trust and responsibility in the digital age.
If you’ve not got cover and want an overview of seven companies that cater for businesses in the wellbeing sector head over to our blog: Choosing the Ideal Insurance Company for Your Wellness Practice: Our Top 7 Picks