What are the different types of insurance (legal and optional) that my business is required to have before it can start trading, and what are the risks of not having it?
All businesses face risks and trade under many different legal requirements relating to insurance. These could be public liability, which ensures your customers and the general public are protected ,or commercial vehicle insurance, similar to your private car. Business insurance allows small firms to deal with unforeseen losses (damage to property or drop in profits if you have to close for a period) and minimises disruption in the event of a setback, getting you back up and running quickly.
Insurance also provides a level of protection for the firm in more serious incidents involving injury or even death. It’s wise to consider the risks applicable to your sector and business model and seek appropriate insurance. For example, an independent consulting business providing advice to large corporates will need a greater level of professional indemnity insurance than a local consumer facing retailer.
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Business insurance 101
Start Up Loans
WHEN: You want to know what types of insurance you need.
WHY: Helps you get to grips with the options so you can make sure your business is covered if anything goes wrong.
WHAT: A quick and easy guide to the main types of business insurance that are available: public liability, professional indemnity, employers’ liability, cyber insurance, vehicle insurance, and buildings and content insurance.
Compare The Market
WHEN: You have identified that you need insurance and now want to find the best deal.
WHY: Having the right insurance in place can avoid costly pay-outs should things go wrong, so it’s worth taking the time to decide what you need.
WHAT: A tool to compare and contrast different policies. Some brokers specialise in insurance for small businesses, so can offer a combined package that incorporates all the different elements you need. However, you should always shop around to make sure you are getting the best deal.
OTHER: A guide to what types of business insurance are available and which are the best ones from Entrepreneur Handbook.