When you’re setting up a new business, it’s understandable that you’ve got a lot of things on your mind. You’re already worried about the success or failure of the business and whether you’ve made the correct decision (which is fine – this is a perfectly normal combination of anxiety, and excitement!).
You may also be wondering if you’re going to be able to find the correct employees, and establish a solid customer base.
One of the most important factors to consider when setting up your business is an adequate insurance policy.
This brief guide will give you some insights into the most important types of business insurance you should acquire.
Employers Liability Insurance
Employers Liability Insurance is perhaps the most important type of business insurance that you will acquire when you start out.
This type of insurance will protect you against any claims made against you by employees, covering you for any compensation packages that are ordered on the back of employee injury, any medical bills, as well any legal costs that incur from your defence.
Employers Liability Insurance is a legal requirement in the UK, and failure to possess it could mean you’re liable to pay up to £2500 for each day you don’t have this insurance.
Always ensure you possess employee liability insurance, if you have other employees when you begin trading.
Public Liability Insurance
Second on the list is public liability insurance. Although not a legal requirement in the UK, public liability insurance could prove to be the most important insurance package you’ve ever purchased.
It protects your business against any claims made against you by third parties, such as the general public, either on or off-site – as well as other workers from other companies, and customers.
It’s understandable that when you’re starting a new business, you’re also looking to save costs wherever necessary, and the non-mandatory nature of public liability insurance can be tempting to ignore.
But let’s consider you’ve been contracted to a construction site and a few members of the public are injured in relation to your company. Without public liability insurance, you could be forced to pay out multiple compensation packages, as well as any medical bills related to the incident.
Public Liability Insurance will cover you against:
- Personal injuries made against you by a third party
- Losses or damage that occur because of your business
- Death to any third-party
- Incidents that take place both on and off your premise in relation to your work
Hopefully, you’ve now gained a better understanding of the vital components and types of business insurance that are necessary when you’re starting a new business.
Before you begin trading you should always make sure you’re protected in every way.
List all the items and equipment you need for your business, your number of staff, and note the premises you will operate from. Then, contact a reliable insurance company who specialise in business insurance and invest in a tailor-made insurance policy that will protect all the hard work you’ve put in so far – and in the future.