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Guide Insurance for your small business

Discussion in 'Legal, Insurance, Employment and Health & Safety' started by Cody, Apr 11, 2018.

  1. Cody


    Feb 17, 2016
    Thinking of starting a small business? Great. Did you know though, that you should probably consider getting some business insurance.

    If you ever get into a tricky situation that could seriously impact the future of your business then you want to be able to have adequate protection and cover in place, and this includes the likes of legal expenses for example.

    Here are the most common business insurances, so it's best to choose one that fits your business model. Not every business is the same, so you'll have different policies in place with different needs and requirements that these insurances can offer.

    1) Public Liability Insurance

    Public liability insurance protects you against any claims made by members of the public that have been injured by a business/ service which has a connection to your business.

    If you have for example a window cleaner that has left their ladder unattended, and a member of the public trips over and is injured by it, this connection (although not directly related to your business) could see the claim come out of your own pockets.

    Public liability insurance isn't a legal requirement, however it's a great idea to have to help protect yourself and your business associated with any connections that will perform any work in or at your business premises.

    2) Business Contents Insurance

    If any items are stolen or damaged from your business, and you rely heavily on them in order to offer your service, then this insurance ensures you're covered up to the value of the items.

    New-for-old insurance means regardless of how old and tired the items were before being damaged or stolen you'll be funded for the full cost of the items brand new.

    Wear-and-tear means you'll still receive a replacement of the items, however in the same condition before they were stolen or damaged.

    Business contents insurance is not a legal requirement.

    3) Professional Liability Insurance

    If your business has been found to have provided a false, misleading or inadequate service or information then this can give you the protection you need. Normally referred to as an Errors and Omissions insurance in the US, this type of insurance normally applies to accountants, lawyers, consultants and so on.

    4) Employers Liability Insurance

    If you're a business with employees working within a hazardous environment, construction, hair dressing, science lab, and even working with toxins that can burn you (i.e cleaner), then you will need to have an employers liability insurance. This will provide you with the cover should any employee fall sick or ill due to the work they're carrying out.

    This is a legal requirement. It's also fully recommended to ensure your staff are trained on all every aspect of the job taking into account the Coshh, H&S training and if it applies, CSCS.

    5) Product Liability Insurance

    Do you run a small food business? Then this is something you need to read.

    Product liability insurance can protect you against claims of personal injury and damage to property caused by a product your business sold and supplied. Even if you haven't actually manufactured the product yourself, you may be held liable. If the products holds your business name and logo, or if you've had any products not manufactured by yourself but repaired and refurbished, then you will still be liable. This applies to food also. If a member of the public falls sick from food poisoning caused by your products, you will be liable to pay compensation.

    Product liability insurance isn't required by law, however if you're working with manufacturers and suppliers, then you may be required to have this insurance in order to work with these people.

    Are there any other types of insurances you can think of? Let us know.
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