When you begin a business, you can protect yourself and your business with different types of insurance, some of which are required and some of which are not. Having the proper ones on hand can keep you from paying out a lot of money if something goes wrong, so it’s important to take the time to figure out what you need.
How Does It work?
You can purchase policies in person, directly or through an insurance broker. Some brokers focus on coverage for small businesses and can give you a package that includes everything you need, but you should always compare prices to ensure you’re receiving the best deal possible. Here’s a list of things you might need:
If you run your business out of your home, your current home contents insurance plan might not cover things like business equipment and stock. If this is the case, you will need to switch from a domestic plan to a business content plan. You should also ensure that any business equipment you take out of the house, like laptops, smartphones, iPads, and so on, is properly covered.
It is best, to be honest with your insurance company about what you’re doing and why you need coverage. Otherwise, you could be in financial trouble if you ever have to make a claim. A fire or flood, for example, could damage stock and equipment by tens of thousands of pounds.
Indemnity insurance for professionals
You need professional indemnity insurance if you run a business that gives advice or services, like a consultant, architect, or accountant. This will protect you from negligence claims and bad advice, like slander and libel: outright untruths, misrepresentation, errors, omissions, and unintended breach of confidence.
If you don’t have it, you might have to pay a great deal of money to make up for a mistake. Also, before hiring you, clients may want to ensure you have a current professional indemnity policy. Before buying a policy, it might be a good idea to determine how much coverage clients expect.
Looking for a great deal on insurance? Then you’ll want to contact QuoteRadar.co.uk. They can provide you with a free quote, so you can compare prices and find the best coverage for your needs.
Insurance for the public
If customers or members of the public come to your place of business or if you go to theirs, you will require public liability insurance to safeguard your business from claims of loss or injury. If you run a decorating and painting business and a customer trip over your paint pot, public liability coverage would pay for any compensation claims being made against you.
If you are a trade group or professional organization member, you may already have public liability insurance. Equity, a union for actors and performers, gives its members up to £10 million in coverage at no extra cost.
Insurance for employers’ liability
Employers’ liability coverage is required for anyone who hires a full-time, part-time, or seasonal worker. The only time this isn’t true is if you operate a home-based business and hire a parent, child, or sibling to collaborate with you.
The coverage is designed to safeguard the business person from every claim from an employee getting sick or hurt at work. Most insurance companies will automatically cover a small business for £10 million, which ought to be more than enough.
If you’re a tradesperson who works in other people’s homes, it is especially important to have enough insurance. As well as public liability plan, you should ensure you are protected from any damage to property or injuries you cause.
You should also have personal accident coverage to cover your medical bills and lost wages if you get hurt at work.
You may want to upgrade your car insurance to cover business and personal use. This is especially true if you plan to run a business that means driving clients around, like an estate agency.
Things to think about
If you have an online business that sells things over the web, you will also want to get product liability coverage to protect you in case your products hurt someone or cause damage.
Even if you didn’t create the items yourself, you might still be liable for compensation if the product has your business name on it or if you changed it somehow. You will also require stock cover if the stock you hold gets damaged or stolen.