When it comes to starting up a small business, there are a huge number of things to consider. One of the most important, which many people forget to consider, is business insurance.
There is an extensive amount of options to choose from, and many policies can be tailored directly to your business’ individual requirements. In order to determine which types of insurance you should opt for when you start up, we’ve put together a list of some of the most popular, and beneficial for your business.
Public Liability Insurance
Every small business should ensure that they have some form of public liability insurance cover from the moment they open their doors. Public Liability insurance is not a legal requirement; however, some businesses and individuals will refuse to work with companies who do not have the most appropriate cover. For example, if an electrician does not have the most appropriate or up-to-date electrician insurance policy, then they may be unable to win contracts which could pave the way to success. Public Liability insurance provides both defence and damages to you, your employees, and your products/services, should you be found libel of causing bodily harm or property damage to a third party/member of the public. All small businesses can benefit from Public Liability insurance, and this type of policy can protect a business from having to fund thousands of pounds (or more!) in a court case should the situation arise.
Professional Liability Insurance
Professional Liability insurance is somewhat different to Public Liability insurance, as it can provide cover if a business is found to have provided false/misleading information, or a less than adept service. This is particularly applicable for professional firms, such as accountants, lawyers, consultants and estate agents. Some insurance providers, particularly those based in the US, will refer to this type of insurance as Errors and Omissions insurance.
Business Contents Insurance
This is not a legal requirement, but if your business relies on expensive equipment which could be difficult or expensive to replace, then you may want to opt for this particular type of cover. Essentially, if your items are stolen or destroyed, then the insurance will fund the replacement of these items. There are two different types of business contents insurance: new-for-old cover which will meet the full cost of replacing an item, and the latter which will take off the cost of any wear-and-tear so the items are given back to you in the same condition in which they were before being stolen or destroyed.
Employer’s Liability Insurance
If you are set to hire any employees, then you will need to have some form of Employer’s Liability insurance, as a legal requirement. Employer’s Liability insurance can provide you with cover if an employee was to become injured or fall ill as a result of the work they are carrying out whilst working with your company. This can be particularly important for businesses who are working in hazardous environments, such as construction or hair dressing where there are strong chemicals regularly being used, but all businesses are required by law to have some form of insurance to cover this.