Starting your own business requires a lot of thought and planning, and there are many things you need to put in place before you begin trading. One of these things is insurance - and it’s important to get this right from day one. We previously explained what insurance you need to start a business from home, but now let’s take a look at the insurance you may need if you also have your own premises.
Employers’ Liability Insurance
If you run your own business with its own premises, it’s likely that you have employees - in which case, you’ll need employers’ liability insurance. This covers you if an employee is injured or if their personal property is damaged as a result of working for you. In fact, this is the only insurance policy you are legally required to have as a small business - and if you don’t have it, the Health and SAfety Executive (HSE) can fine you £2,500 for every day you are unprotected.
Professional Indemnity Insurance (PI)
Professional indemnity insurance covers you if you make a mistake or provide inadequate services - it covers claims of libel, breach of confidence, loss of information and more. Taking out this insurance covers you for the legal cost of defending your business against such claims.
Public Liability Insurance
This insurance covers you if a customer has an injury or if their personal property is damaged as a result of coming to your business. If you need to pay compensation in the event that your business is found to be at fault, public liability insurance can cover this.
Directors’ and Officers’ Liability Insurance
Business founders or directors can be covered by D&O insurance - also known as management liability insurance. This protects individuals with management responsibility, in the event that claims are made against them personally - such as breaching health and safety laws or misadministration of company pensions. Penalties for these claims can include fines and even prison sentences, and D&O insurance will help you to cover the legal and compensation costs when defending yourself. Investors may ask if you have this type of cover, which is good to know if you are looking for funding.
Product Liability Insurance
If you manufacture, sell, repair or repurpose products, product liability insurance can protect you in the event that those products cause injury or damage someone’s personal property.
Contents and Portable Equipment Insurance
While standard contents is everything you keep in your premises - such as office furniture and fixed equipment - portable equipment is technology such as smartphones and laptops. All of this equipment is critical for keeping your business up and running, and this cover protects those physical belongings in the case of fire, flooding, loss, damage or theft.
Cyber Liability Insurance
In this modern day, cybercrime has become a big problem for businesses and individuals, but you can get cover for this, too. Cyber liability insurance covers you for legal claims, compensation costs and fines related to the damage caused by data breaches and cyber attacks.
A Comprehensive Business Policy
It may be that taking out a comprehensive business insurance policy is easier than buying each type of cover separately.
The world of insurance gives business owners a lot to think about - and worry about - on top of a wide range of other issues battling for your attention. Paramount Company Formations can help take some of the stress away by forming your company for you, registering you for VAT and EORI, providing you with a business bank account and registered business address, and more. If you are looking to start your own business, take a look at our company formation services and explore the ways we can help you.