A guide to small business insurance
Do I need business insurance?
Small businesses face potential threats each and every day. In the course of operating your business you may also pose a threat to, or endanger, your employees, your customers, your suppliers or the general public. Whilst business insurance cannot stop these events from occurring, if they do happen your insurance may provide financial compensation and will also cover certain costs (which in some cases may be considerable!) that you would otherwise have to cover from your own pocket.
To protect yourself and your business you should consider exactly what business insurance is appropriate for your circumstances. Many business insurances are optional but some are a legal requirement depending upon the industry you work in, where you operate from, and if you employ staff.
Insurance to protect your business
Equipment and office contents insurance
If you have commercial premises you’ll want to insure the premises, its fixtures and fittings and your general office equipment. You need to protect these assets against accidental or malicious damage, or damage or loss by fire, flood, or vandalism. Don’t forget to include any specialist tools or machinery you need to run your business, and portable equipment such as laptops or mobile phone, and when you purchase new equipment remember to add it to your policy!
Compare quotes for office insurance here
Compare quotes for shop insurance here
If you work from home check your home contents policy and contact your insurer.
Goods in transit insurance
As well as making sure your vehicle is covered to transport goods you can also insure the goods themselves against loss, destruction or damage whilst being transported.
Business interruption insurance
Business interruption insurance covers you for loss of revenue, or trading profit, if your business is unable to trade as a result of damage to property or equipment.
Money insurance
Will reimburse you for money that is lost or stolen from your business premises, your home or whilst it’s being moved.
Business liability insurance
You have a duty of care to your customers, suppliers, employees and the general public. You could be held legally liable and risk being sued if anyone is injured as a result of your negligence or breach of this duty. Some of the insurances listed below are compulsory under certain circumstances.
Product liability
A product is defined as any physical item that is sold or given away. If you supply a product, even if you did not manufacture the product yourself, you are responsible for any damage or injury caused by something going wrong with it. This type of insurance usually covers you for unforeseen circumstances, not for inferior products that are not fit for purpose.
Professional Indemnity Insurance
This insurance is for people who sell their skills or expertise. It will protect your business from a client seeking compensation for damages caused by taking your advice. Because there can often be a long delay between the advice being given and any subsequent problem leading to a claim it’s important to ensure you are covered at the time the compensation claim arises. This could mean insuring yourself even if you are no longer operating in this line of business.
Compare quotes for professional indemnity insurance
Employer’s liability insurance
If you employ people you have a legal responsibility to have adequate employer’s liability insurance cover, and to display a copy of your certificate of insurance at all your business premises. You can be fined significant sums of money if you do not. This insurance offers you protection from liability for any injury or illness to your staff while they are working for you. It is no longer necessary to have this insurance if you are the only employee of your company.
Public liability
If members of the public visit your business premises, even if you work at home, this insurance will protect you from liability for any injury or damage to them or their property that occurs during the normal operation of your business.
Get quotes for public liability insurance here
Other small business insurance you may consider
Income protection insurance
This will pay you a regular income if you are unable to work because of illness or injury.
Business car or van insurance
Make sure your policy covers you for the type of journeys you’re making. As your car or van will be classed as a commercial vehicle when you are using it for business use, you will need commercial car or commercial van insurance. Most personal insurance policies will not include journeys where you are transporting goods or travelling to customer premises. Always make sure your insurer is aware of what you are using your business vehicle for so you get the right cover for your needs. You can be prosecuted and fined for driving with the wrong insurance, and this could make it difficult or more expensive to get insurance cover in the future.
Compare quotes on business van insurance
Private medical insurance
This will cover the cost of private medical care for you and key members of your staff. As well as ensuring you or your staff get quick and convenient medical treatment so the impact to your business is minimised, this type of insurance can also be a popular staff benefit.
What to look for when choosing insurance for your business
Watch out for policy excesses
You may be responsible for paying the first amount of every claim, so make sure you know exactly how much you will have to pay. For some policies you may be able to reduce your insurance premium by increasing the amount of excess you are prepared to pay.
Do you have enough insurance cover?
For insurances that aren’t compulsory it’s your responsibility to make sure the amount you are insured for is the right amount – too low and you won’t cover your losses in full, too high and the premiums you’ll be paying will be unnecessarily high. To get the right level of cover make sure you keep purchase receipts and always supply accurate information to your insurance company: if you don’t know, find out and don’t guess!
Insurance policy conditions and exclusions
Make sure you understand what you have bought and are aware of any conditions or exclusions that are in force. You don’t want to wait until you need the insurance to find out you’re not covered!
Don't necessarily go for the cheapest insurance
Unfortunately it’s often not until you need to make a claim that you realise how good or bad your business insurance is. Going with reputable companies or on personal recommendation helps, but it also helps to check things such as how they handle claims and whether they have a 24 hour contact phone number to help you out in an emergency.
A guide to small business insurance
Do I need business insurance?
Small businesses face potential threats each and every day. In the course of operating your business you may also pose a threat to, or endanger, your employees, your customers, your suppliers or the general public. Whilst business insurance cannot stop these events from occurring, if they do happen your insurance may provide financial compensation and will also cover certain costs (which in some cases may be considerable!) that you would otherwise have to cover from your own pocket.
To protect yourself and your business you should consider exactly what business insurance is appropriate for your circumstances. Many business insurances are optional but some are a legal requirement depending upon the industry you work in, where you operate from, and if you employ staff.
Insurance to protect your business
Equipment and office contents insurance
If you have commercial premises you’ll want to insure the premises, its fixtures and fittings and your general office equipment. You need to protect these assets against accidental or malicious damage, or damage or loss by fire, flood, or vandalism. Don’t forget to include any specialist tools or machinery you need to run your business, and portable equipment such as laptops or mobile phone, and when you purchase new equipment remember to add it to your policy!
Compare quotes for office insurance here
Compare quotes for shop insurance here
If you work from home check your home contents policy and contact your insurer.
Goods in transit insurance
As well as making sure your vehicle is covered to transport goods you can also insure the goods themselves against loss, destruction or damage whilst being transported.
Business interruption insurance
Business interruption insurance covers you for loss of revenue, or trading profit, if your business is unable to trade as a result of damage to property or equipment.
Money insurance
Will reimburse you for money that is lost or stolen from your business premises, your home or whilst it’s being moved.
Business liability insurance
You have a duty of care to your customers, suppliers, employees and the general public. You could be held legally liable and risk being sued if anyone is injured as a result of your negligence or breach of this duty. Some of the insurances listed below are compulsory under certain circumstances.
Product liability
A product is defined as any physical item that is sold or given away. If you supply a product, even if you did not manufacture the product yourself, you are responsible for any damage or injury caused by something going wrong with it. This type of insurance usually covers you for unforeseen circumstances, not for inferior products that are not fit for purpose.
Professional Indemnity Insurance
This insurance is for people who sell their skills or expertise. It will protect your business from a client seeking compensation for damages caused by taking your advice. Because there can often be a long delay between the advice being given and any subsequent problem leading to a claim it’s important to ensure you are covered at the time the compensation claim arises. This could mean insuring yourself even if you are no longer operating in this line of business.
Compare quotes for professional indemnity insurance
Employer’s liability insurance
If you employ people you have a legal responsibility to have adequate employer’s liability insurance cover, and to display a copy of your certificate of insurance at all your business premises. You can be fined significant sums of money if you do not. This insurance offers you protection from liability for any injury or illness to your staff while they are working for you. It is no longer necessary to have this insurance if you are the only employee of your company.
Public liability
If members of the public visit your business premises, even if you work at home, this insurance will protect you from liability for any injury or damage to them or their property that occurs during the normal operation of your business.
Get quotes for public liability insurance here
Other small business insurance you may consider
Income protection insurance
This will pay you a regular income if you are unable to work because of illness or injury.
Business car or van insurance
Make sure your policy covers you for the type of journeys you’re making. As your car or van will be classed as a commercial vehicle when you are using it for business use, you will need commercial car or commercial van insurance. Most personal insurance policies will not include journeys where you are transporting goods or travelling to customer premises. Always make sure your insurer is aware of what you are using your business vehicle for so you get the right cover for your needs. You can be prosecuted and fined for driving with the wrong insurance, and this could make it difficult or more expensive to get insurance cover in the future.
Compare quotes on business van insurance
Private medical insurance
This will cover the cost of private medical care for you and key members of your staff. As well as ensuring you or your staff get quick and convenient medical treatment so the impact to your business is minimised, this type of insurance can also be a popular staff benefit.
What to look for when choosing insurance for your business
Watch out for policy excesses
You may be responsible for paying the first amount of every claim, so make sure you know exactly how much you will have to pay. For some policies you may be able to reduce your insurance premium by increasing the amount of excess you are prepared to pay.
Do you have enough insurance cover?
For insurances that aren’t compulsory it’s your responsibility to make sure the amount you are insured for is the right amount – too low and you won’t cover your losses in full, too high and the premiums you’ll be paying will be unnecessarily high. To get the right level of cover make sure you keep purchase receipts and always supply accurate information to your insurance company: if you don’t know, find out and don’t guess!
Insurance policy conditions and exclusions
Make sure you understand what you have bought and are aware of any conditions or exclusions that are in force. You don’t want to wait until you need the insurance to find out you’re not covered!
Don't necessarily go for the cheapest insurance
Unfortunately it’s often not until you need to make a claim that you realise how good or bad your business insurance is. Going with reputable companies or on personal recommendation helps, but it also helps to check things such as how they handle claims and whether they have a 24 hour contact phone number to help you out in an emergency.