Each new start up has different needs, it’s important to make sure that the risks you face are covered. Business insurance policies will cover your business insurers your business can foot the bill for things like compensation payments and legal costs.
Employers’ Liability Insurance
Employers’ liability insurance is the only type of insurance that is legally required. If your business employs anyone then you need at least £5m of cover. There are exceptions, for example if you only employ immediate family members, please contact us if you have any questions about the exceptions.
Employers’ liability insurance is designed to cover compensation claims made by your employees for injury or damage that’s caused by their duties. For instance if an office worker suffers from repetitive strain injury (RSI) caused by computer work.
Professional Indemnity Insurance
Another important insurance to consider when you’re starting your business is professional indemnity insurance. Professional indemnity insurance protects you against compensation claims made by a client because they believe you’ve made a mistake in your work. This includes things like breaching confidentiality, infringing copyright, or giving advice that causes your client to lose money.
Some professional bodies, regulators and clients insist that their members or suppliers have a professional indemnity policy, including in areas like law, financial advice, accountancy, architecture and healthcare.
Public and Product Liability Insurance
Public liability insurance is worth considering if your business deals with the public, customers may come to your premises, you visit client premises or work in public. It covers compensation claims made by someone who blames injury or damage on your business.
Product liability insurance protects you if a product that you sell causes injury or damage to a member of the public. For example if you sell a product that has a manufacturing fault that causes injury, your product liability policy could pay any compensation claims made by the buyer.
Building and Contents Insurance
If you own a business premises such as a shop or an office, buildings and contents insurance is another insurance requirements. If you rent then you’re only responsible for covering your contents (your landlord should cover the building), but if you own your premises then you need to insure the building too. If you’re running your business from your home then you should check your home insurance policy documents carefully, as business activities may not be covered under a standard home insurance policy.