We all know that insurance can often be considered ‘a grudge purchase’, particularly if a claim is never made, but when something does happen, insurers are often amongst the first people that you will call.
So what insurance should a start-up consider putting into place? This depends on what business you are in, but here are some of the most common insurance types you’ll need to consider to make sure you’re covered should anything go wrong.
Public liability insurance
Pretty much every business should purchase public liability insurance*. This covers you in a number of ways. One way might be if a member of the public walks into your premises and trips over something and injures themselves. Another way might be if you are working away at someone else’s premises and you damage their property.
*The only exceptions are people who would not visit someone’s place of work or invite people into their place of work, e.g. freelancers who work from home and sort out their tasks purely through emails, phone calls, etc.
Employers’ liability insurance
If you employ anyone then your legal requirement is to acquire employers’ liability insurance for your business. This will look to indemnify you if an employee has an accident whilst at work.
Professional indemnity insurance
If you are a consultant – such as an accountant, health and safety or IT professional – then you should most certainly consider professional indemnity insurance. This will seek to indemnify you if you provide wrongful advice to your customer. For example, if an Independent Financial Advisor were to give bad advice, then the client could sue and then the indemnity policy would kick in.
If you own property, a shop or you have an office, then business insurance is something you will need. Standard business insurance usually comes in the form of a package policy, which will include your stock, office equipment, business interruption and public and employers’ liability.
Business interruption insurance
This is especially important if you are a retailer. For example, if you need to close for a lengthy period of time due to a claim, usually up to 24 months, then the insurer will look to cover your loss of profit for that period whilst repairs and replacements are being carried out.
It goes without saying, but make sure you provide accurate information when obtaining any insurance or your policy could be voided. This isn’t something that you want to risk – after all, it is your business and your livelihood at stake!
Do you have any questions about insurance? Ask away!