What kind of insurance does your small business need?

July 27, 2017 | by | 0 Comments

When it comes to choosing the correct insurance products to suit your small business’ needs, it’s actually quite simple. It’s all largely based on what type of small business you have, how large it is and what sort of products and assets you need to protect. To help make life a little easier for you, here is your guide to the types of insurance that your small business may need.

1. Employment Liability Insurance

In the UK, every business that employs one or more member of staff is required by law to have an Employers’ Liability Insurance policy in place. This is in accordance with the Employers’ Liability Insurance Act 1969. This insurance is quite simple, it covers your small business in the event that an employee who is injured or becomes ill at work as a direct result of their work for your business, makes a claim for compensation. There are some types of businesses that are exempt from this insurance such as non-limited family businesses and government departments; however, everyone else must comply!

2. Property insurance

If you own your building or have personal business property, such as office equipment, inventory, tools or computers, you should consider purchasing a property insurance policy that will protect you if you experience theft, a fire, vandalism, smoke damage etc. You may also want to include business loss of earning insurance as part of the policy to protect your earnings if the business is unable to operate.

3. Trade-specific insurance

Depending on the type of small business you are running, you can opt for insurance that is specific to your trade in question. For example, you can get insurance for electrical businesses or even carpet cleaner insurance for your carpet cleaning business. You will often find that these specific insurance products will cover lots of different elements that are tailored to your small business’ needs.

4. Public liability insurance

It’s easy to overlook the need for public liability insurance; however, if you’re working from home or are self-employed, it’s actually a policy you need to consider. It’s necessary if members of the public or customers come to your place of work and vice versa. For instance, if you ran a mobile makeup artistry business and a client’s skin experienced a reaction to a product, you would be covered for any compensation that was claimed. Another example is if you ran a photography business from your very own home studio, and a client tripped over a camera or a wire/lead during a photo shoot, you would also be covered for any potential compensation claims.

5. Contents insurance

If your small business is starting from home (as many of them do), you will need to check the contents of your home contents insurance policy carefully, as it’s likely you will need to add cover for your business equipment. Be honest with your insurer so you can be guaranteed you’re covered.

Don’t think that because you are just a “small business” that you don’t need important insurance coverage. Ensure you are set up with the right policies to give your business the best possible start!

Category: Business

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