Insurance for small businesses – are you fully covered?

Most new small business owners are unaware that they are legally responsible for a wide range of issues should any accidents happen, and it is imperative that they have the correct insurance to protect against all manner of claims. Therefore, making sure your business is insured against all eventualities is probably the most important decision you’ll make.

Depending on what type of business you have will determine what insurance cover you need and because each business is unique you can choose a bespoke insurance policy that best meets your needs.

What type of insurance cover do small business owners need?

To decide what type of insurance you need for your business you need to think carefully about what your business does, who you deal with and therefore what you need to protect. There is a plethora of insurance policies to choose from so let’s look closer at some of the most common types available.

Professional Indemnity Insurance

Any business that provides a professional service to other businesses, offers advice, or deals with intellectual property or client data will require professional indemnity insurance. Should a client lose money because of a mistake by your business and decide to sue you then this type of insurance will cover your legal costs and expenses to defend your case and pay compensation for your client if awarded. Accountants, surveyors and architects are examples of the businesses that use professional indemnity insurance.

Public Liability Insurance

If your business deals with members of the public then public liability insurance is definitely worth considering. It provides protection against claims for damage or injury made by customers, suppliers and third parties. You need to check your clients’ contracts to see what level of public liability insurance is needed. Most shops and tradespeople require this type of insurance.

Employers Liability Insurance

Most businesses that employ staff are legally required to have employers’ liability insurance. Employers are responsible for the health and safety of their employees while they are at work so this type of insurance will protect businesses from claims for compensation made by employees regarding injury, illness or damage resulting from work. If your business isn’t exempt from employers’ liability insurance and you fail to take out a policy, you can face significant fines. To find out what types of businesses are exempt from this type of cover visit: https://www.hse.gov.uk/pubns/hse40.pdf

Business Buildings Insurance

Business buildings insurance is important for businesses that operate from home or from separate premises such as an office, shop or café. For tenants renting buildings, it is important to check with their landlords to see what insurance is already in place.

Business Contents Insurance

This insurance covers, as the name suggests, the contents of your business such as equipment and tools. Business contents insurance will replace or repair these contents if they have been lost, stolen or damaged.

Stock Insurance

This insurance protects against, damaged, destroyed or stolen stock when it is stored onsite or in storage elsewhere.

Product Liability Insurance

This provides protection if a customer suffers injury from a faulty product supplied by a business, regardless of who manufactured the product.

Personal Accident Insurance

Personal accident insurance providers cover in the unfortunate event of a serious injury or even death.

Business Interruption Insurance

This offers financial protection if your business is disrupted by flood or fire and will cover the period you have had to suspend trading for.

Remember there are many more types of insurance policies for small businesses and it is crucial that you secure cover immediately. If you are still unsure about what type of insurance your business needs, you can speak with one of our insurance experts.