Starting a Business? Have You Thought About Insurance?

Monday, July 8, 2013

If you are starting a business, an important part of the process of setting up your company is taking out the right insurance. If you are self employed this is no exception as you may be dealing with many of the same issues as a larger business.

When you are starting a business you need to think about the business activities you will be doing and make sure you have the insurance to cover you. Some businesses will need to have a higher level of insurance as they will be taking more risks than others and therefore will need to pay higher premiums for their cover.

As a business that is just starting you will be trying to save money and probably invest any money you have into your business. The last thing you need is to be hit by a claim because of some accidental damage that you might have caused to another person's property. If you are faced with having to pay a claim it would be a big relief to have insurance that covers the cost.

In the UK there are various types of business insurance you can buy that will cover your new companies needs.

Public Liability Insurance

Imagine that you were in the situation where you were a Tradesperson and you were working in someone else's home. You could be a plumber for example, and you accidentally break a pipe causing a leak. That leak could cause damage to that person's house. If you didn't have business insurance you might be liable to pay for the damage you accidentally caused. The cost of the damage could be large so having insurance could possibly stop your company from having to go out of business.

Professional Indemnity Insurance

Professional Indemnity Insurance is another cover that could be vital for you to have if you are starting a business. This cover is mainly used by consultants who give other people advice. If as a consultant you give advice that is proven to be wrong and causes your client to lose money, Professional Indemnity Insurance will cover you for the costs of that claim.

Employers Liability Insurance

If when starting your business you intend to hire employees you will need Employers Liability Insurance. This will cover your business if an employee is injured or falls ill whilst at work due to your negligence. The cost of a claim could be very large and could be a significant problem for your business, especially if it has just started.

Additional Insurance Cover

You can also take out additional insurance cover depending on your needs as a small business. You may need insurance for your commercial vehicles, business buildings insurance, tool or equipment insurance, as well as other covers specific to the work you do.

Starting and growing a business should be an exciting time, you don't want it to be ruined by having to pay out a large amount because of a claim made against you. Business insurance is relatively cheap and easy to buy online and could save you from future financial worries.