You can never predict what the future holds. That’s why you are going to want to ensure that you have the right insurance in place for your business. You can do this by getting small business insurance which will cover you for any unforeseen claims or costs when you need it the most.
Every year around 97,000 small businesses are formed. This means that your small business is entering a crowded marketplace. As you consider the competition you may face in your marketplace, you want to make sure that you have other areas taken care of. This includes having the correct insurance policy for your small business.
1. Why do I need insurance?
Insurance is there in case of any claims for damages or losses. If you have the right kind of insurance, you can get back to running your business with peace of mind knowing you’re covered properly.
If you employ one or more members of staff, then you need to make sure that you have a policy in place to cover them. In 2017/2018, the Health & Safety Executive reported that an average of over 1 million workers in the UK was affected by workplace accidents or work-related illness.
Certain types of cover are legally required. This would include liability insurance if you employ staff, and if you use vehicles, motor insurance. The other cover you may need will depend on your business. Some of the things you may want to cover yourself include:
– Customer claims
– Interruptions to business
– Damage to stock or property
2. What insurance should I have?
Some of the types of insurance that are available for small businesses include:
– Public liability
– Employer’s liability
– Equipment insurance
– Professional indemnity
– Contents and buildings insurance
– Stock
3. Do I need a specific type of insurance?
You may work from home, run a restaurant or own a guest house. Either way, your needs will differ. It is always vital to make sure that you assess risks that your business may face and make the right choice for the correct insurance.
An example of this is indemnity insurance, which would be a good choice if you’re a solicitor or accountant, just in case clients lose money based on incorrect advice given to them. Likewise, if you use IT systems, a cyber policy can cover you for any interruptions, damages, and loss to your clients.
Some of the businesses that would need a policy include:
– Restaurants & cafes
– Shops
– Offices
– Hotels
4. Do I need employer’s liability insurance?
If a business has one or more employees, then it is a legal requirement that they have employer’s liability insurance. This can cover a member of staff if they suffer illness or an injury as a result of something that happens at work. It has been found that 23% of small businesses that have expanded have had to employ more staff, so it is important you are prepared with the right policy.
You will also need it if you:
– Deduct income tax and national insurance from pay
– Decide where and when staff work
– Provide materials and tools for work
– You employ people that cannot be replaced easily
The policy should cover permanent, part-time and casual employees.
5. How much does it cost?
The price will be dependent on different factors such as the size of the business, how many staff are employed and how your business may be affected by a flood, fire or theft.
You need to consider the risk to your business if you are not covered correctly. Focus on the need at first and then the price.
6. I work from home, do I still need it?
This would depend on the type of business. If you have stock or equipment at home, then your home insurance would not cover any damage or loss. You may also find that if you work from home, this may cancel out your current home insurance cover.
7. What is indemnity insurance?
This is a type of cover that not every company needs, and is for a business that offers skills or advice. Businesses such as accountants or consultants would require it.
Make sure you are covered
You want to make sure that you have the right policy in place, so look into your current policy or get a quote for a new policy as soon as possible.
