Operating a start-up business inevitably takes up a lot of time and effort.
In addition to the usual tasks of starting a business, such as acquiring a customer base, dealing with cash flow and getting everything ready to launch, there is another thing you need to consider and that is organising your business insurance
Thankfully, insurance is not as complicated as it may seem. So, we've put together a handy guide that will point you in the right direction when it comes to taking out a business insurance policy.
Employers liability insurance
The minimum insurance policy you must have by law is employers' liability insurance
. This policy will cover your business if one of your members of staff makes a claim that they have either been injured or have fallen ill as a result of working for your business. Employers' liability insurance will cover any compensation costs involved as well as any legal costs incurred should you decide to defend the case.
Failure to have employers' liability insurance can be costly, with the Health and Safety Executive able to fine you £2,500 for each day your business operates without protection.
In addition to employers' liability insurance, many start-up business owners wisely choose to take out extra business insurance policies to protect their company from any future costs if things take a turn for the worse.
Professional indemnity insurance
For those of you who are running a business that offers professional services or advice, professional indemnity insurance
will cover you should you make an error and your client suffers any financial loss as a result.
Possessing this type of insurance coverage will protect you against the often-hefty compensation claims and legal costs that come when someone makes a claim against you for making a mistake which they allege has cost them financially.
Public liability insurance
One of the most popular optional policies is public liability insurance
, which will defend your business against claims and damages from members of the public.
Accidents are a part of everyday life, but should you or one of your employees accidentally cause injury or damage to a member of the public or their property, then your business could face some sizeable compensation claims. In addition, the legal costs of defending a claim in court could be astronomical. That is why many owners of start-up businesses make sure they take out public liability insurance as it will help to pay any bills or claims for compensation should the worst happen.
It is also worth knowing that some of your clients or suppliers may demand that you have Public Liability insurance policy if you are going to work for them. So, as you can see, this type of insurance is vital in many ways.
Portable equipment and contents insurance
It doesn’t matter what start-up business you are running, every business makes use of technology or equipment in one form or another, and without it, your business could soon grind to a halt. That is why many business owners add contents and portable equipment insurance to their business insurance policy.
Portable equipment insurance will cover all those items that you need to take with you when away from your premises. Items such as laptop computers, smartphones, cameras or tablets will all be covered against loss, damage or theft when you are out and about.
Business contents insurance works in the same way as contents insurance for your home. It protects the contents of your business premises from fire, flood, theft or damage, meaning you will not have to pay out for replacements, which can run into thousands of pounds.
Cyber liability insurance
One of the newer insurance policies on the block, cyber liability insurance
will help to protect your business from cyber-attacks and data breaches and the damage they can cause. Cyber-crime is one of the fastest-growing risk factors facing modern businesses today, and it doesn’t matter what size your business is, all companies are at risk from cyber-crime.
Cyber liability insurance can help to cover the costs of any compensation claims, legal fees and even fines if the data your company owns is breached in a cyber-attack. This insurance can even help with customer service support, PR and any IT needs that may arise as a result.
How to obtain the best insurance for your business?
Now that you possess a better understanding of some of the commonly purchased types of business insurance you can speak with your insurance broker
to identify the most suitable cover available to meet your needs.
Take the time to seek an insurer that can tailor their policy that can give you some flexibility as your business takes off and grows.
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This guide is for information purposes and based on sources we believe are reliable, the general risk management and insurance information is not intended to be taken as advice with respect to any individual circumstance and cannot be relied upon as such.