So, you’re taking the plunge and starting your own business! It’s an exciting and busy time and there’s a million and one things to do and think about.
But being your own boss means that you need to think about how to protect your business from the unexpected. Nobody likes to think about the things that can go wrong but the financial consequences of a risk occurring could derail your business meaning all your hard work has been for nothing.
Business insurance exists to protect your business from risk. It really is worth taking some time to think about the different forms of business insurance as they relate to your individual business. This way you will have peace of mind that you and your business are protected from uncertainty.
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Commercial Property Insurance
Commercial property insurance offers you financial protection in the event of fire, storm, flood, a water leak, theft, or vandalism at your business premises. Even if you are renting your premises, you would need protection for any fixtures and fittings, contents, and stock which are on the premises.
Commercial property insurance includes business interruption cover should an insured event like those above cause you to cease trading for a time. This will give you some breathing space to get things back on track.
Commercial property insurance usually offers protection in the event of a crime affecting your business such as vandalism or theft of money or stock from the premises.
Insurance for working from Home
It is probably easier and cheaper for many startups to operate from home initially and many successful businesses have grown from working at a kitchen table.
However, be aware that your home insurance may not cover you for operating a business from your home and you may invalidate your home insurance by carrying out your business at home.
Home insurance will also probably not offer sufficient protection for the risks that may occur such as replacing home office equipment, or any stock should you have a fire or other event in your home.
Also, if you were to have clients or customers to your home, you would be unlikely to be covered by your home insurance, should someone have a fall or be injured.
It is best to discuss working from home with your home insurer and make sure that you have appropriate insurance cover, or consider business insurance that protects your business from risk.
Public Liability Insurance
Public liability insurance protects your business should someone be injured, or their property damaged as a result of you carrying out your business. If you run a salon and someone trips over a hairdryer cable, for example or if you spill paint all over someone’s laptop.
The expense of a claim or putting things right could put you out of business. Public liability insurance offers financial protection should such an event occur, as well as cover for legal costs in defending yourself against a claim.
Employers Liability Insurance
Employers’ liability insurance offers protection if you have employees and one of them has an accident or is injured in the course of their employment at your business. You may find yourself legally liable for their injury and responsible for paying compensation to that employee.
You may not need this type of insurance as a start- up if you do not employ anyone else yet but it is an essential type of cover as soon as you think about expanding.
Product Liability Insurance
If you make, supply, service, repair or install a faulty product which causes injury or property damage to another person, you may be legally liable for that injury or damage. For example, a food product that makes someone ill or a toy which is faulty and causes injury.
Product liability protects you financially for any liability and for the legal costs of defending any claim against you.
Commercial Motor Insurance
Commercial motor insurance is a legal requirement, unlike the other forms of business insurance. It is essential that you have the appropriate motor insurance in place, even if you use your own personal vehicle to carry out your business.
If you use a vehicle to carry out your business, you must discuss this with your motor insurer. Personal vehicles are usually insured for Social, Domestic, and Pleasure use only, which may include commuting to work for an employer but would typically not include any use for commercial purposes.
If you use your own personal car for carrying out your business, you may need insure it for Class 1 or Class 2 business use. If you have a business vehicle, you may need commercial motor insurance. Van insurance is a specific form of motor insurance which you may require if you use a van in carrying out your business.
It is essential that you re upfront with your insurer in how you use your vehicle, as if you fail to do so, you may not be covered in the event of an accident.
Professional Indemnity Insurance
Professional indemnity insurance, also known as professional liability insurance, is essential for many small businesses. If your professional advice or service could result in a
financial loss for your client due to a breach, error or omission then you you would be well advised to have professional indemnity insurance in place.
Professional indemnity insurance is also important if you handle client personal data and may be found to be in breach of confidentiality or GDPR requirements.
Cyber Insurance
Increasingly, business needs to be online to survive. If your business has a website, you may need cyber insurance to protect you from fraud, theft, hacking or a data breach. Cyber insurance may be part of professional indemnity insurance or is available as a stand alone product.
Your website, business data, or customer personal information could all be vulnerable and cyber insurance will offer your business protection should there be a data breach as well as supporting your business to manage the data breach and to maintain the reputation of your business.
Where can I find out more about insurance for my small business?
Although business insurance is complex, don’t be overwhelmed. We are here to help your business find the best insurance that offers the right protection for you at an affordable price. This will give you peace of mind that your business can withstand any unforeseen events.
Usually, business insurance is available as a package that is tailored to the needs of your individual business. This is easier and less expensive than trying to purchase several different forms of insurance.
It is also a really good idea to talk to an advisor about the types of insurance that are relevant to your unique business as you may not need all these forms of insurance. In this way, you will be able to arrange the types of cover you need more affordably.
Contact Us
We can do the legwork for you by comparing insurers and prices to find insurance that will protect your business from any risks.
Don’t put off arranging business insurance until its too late and an event has occurred. You have worked hard to get your business up and running, so don’t leave it open to risk.
Take the Compare Insurance free online assessment or speak with a Qualified Financial Advisor who can offer you the best advice and support for your business and find you affordable business insurance.
