Small Business Insurance

 

There are a wide variety of insurance policies you can take out for your business; here are the three main ones:

Small Business Insurance - Employers Liability

It is a requirement by law for the majority of businesses to have this insurance in place, this insurance allows the business to pay legal and damages to an employee should they have an accident or health suffered due to their work activities.  The minimum this cover should be for is £5 million and is enforced by the Health & Safety Executive who can impose fines if appropriate insurance is not in place.  Exceptions form this requirement include limited companies with one employee who owns more than 50% of the shares or small family only businesses which are not incorporated but it is still a good idea to have the insurance in place anyway.

 

Small Business Insurance - Public Liability

Although not compulsory (with one or two exception) if customers visit your premises or you visit theirs it is a wise idea to have this insurance in place.  Public Liability covers any damages that you or your business might incur while carrying out work activities including legal and medical fees.  Before taking out this type of insurance it is a good idea to contact an independent insurance broker who will advise you on the appropriate conditions and exclusions will be most suitable for you.

Small Business Insurance - Professional Indemnity

If your business is based on you selling your knowledge or skills then you may wish to consider this type of insurance, this provides cover should you make a mistake or be found to have acted negligently then all legal costs will be covered.  Some businesses are required to have this type of insurance as set out by the regulatory bodies, these include; accountants, insurance brokers, financial advisers and solicitors.  It is important to know that the majority of policies will only respond to a claim if the policy is live, therefore if you are considering retiring you may want to consider a ‘wind down’ period after the business has ceased to trade.

If you believe that you require additional insurance for your business then it is advisable to seek out professional advice from an insurance broker who can provide impartial advice and source the most suitable package.