A guide to small business insurance
Note: This article is for information only. To discuss the insurance policies most appropriate for your business you should seek guidance from your solicitor, an insurance broker, or an FSA registered insurance adviser.
Do I need business insurance?
Small businesses face potential threats each and every day. These threats are, in many cases, unpredictable and can range from the irritating, such as a small dent on your van, to major issues that could affect the very core of your business and stop you trading. The more serious threats may range from a fire, robbery or vandalism to your premises, or a serious injury or illness to a key member of staff. To protect yourself and your small business from these threats you should seek professional advice on exactly what business insurance is appropriate for your circumstances.
Many business insurances are optional but some are a legal requirement, dependant upon the industry you work in, where you operate from, and whether you employ staff or not.
Below are some of the main insurance policies for small business you may want to discuss with your adviser.
Compare small business insurance quotes from a range of insurers
Insurance to protect your business
Equipment and office contents insurance
Whether you work from home or at commercial premises you’ll want to insure the premises, its fixtures and fittings and your general office equipment. Don’t forget to include any specialist tools or machinery you need to run your business, and portable equipment such as laptops or mobile phones. When you purchase new equipment remember to add it to your policy. You need to protect these assets against accidental or malicious damage, or damage or loss by fire, flood, or vandalism.
Business car or van insurance
Make sure your policy covers you for the type of journeys you’re making. Most personal insurance policies will not include journeys where you are transporting goods or travelling to customer premises. Always make sure your insurer is aware of the exact usage of your business vehicles so you get the right cover. You can be prosecuted and fined for driving without the correct type of insurance, and insurance companies will not look kindly on this when you come to take out or renew your motor insurance.
Get a business car insurance quote from MORE TH>N
Get a business van insurance quote from MORE TH>N
Goods in transit insurance
As well as making sure your vehicle is covered to transport goods you can also insure the goods themselves against loss, destruction or damage whilst being transported.
Business interruption insurance
Business interruption insurance covers you for loss of revenue, or trading profit, if your business is unable to trade as a result of damage to property or equipment.
Money insurance
Will reimburse you for money that is lost or stolen from your business premises, your home or whilst it’s being moved.
Compare small business insurance quotes from a range of insurers
Business liability insurance
You have a duty of care to your customers, suppliers, employees and the general public. You could be held legally liable and risk being sued if any of these people are injured as a result of your negligence or breach of this duty, so this is an area you must take advice on as some are legal requirements.
Product liability
A product is defined as any physical item that is sold or given away. If you supply a product, even if you did not manufacture the product yourself, you are responsible for any damage or injury caused by something going wrong with it. This type of insurance usually covers you for unforeseen circumstances, not for inferior products that are not fit for purpose.
Professional Indemnity Insurance
This insurance is for people who sell their skills or expertise. It will protect your business from a client seeking compensation for damages caused by taking your advice. Because there can often be a long delay between the advice being given and any subsequent problem leading to a claim it’s important to ensure you are covered at the time the compensation claim arises. This could mean insuring yourself even if you are no longer operating in this line of business.
Employer’s liability insurance
If you employ people you have a legal responsibility to have adequate employer’s liability insurance cover, and to display a copy of your certificate of insurance at all your business premises. You can be fined significant sums of money if you do not. This insurance offers you protection from liability for any injury or illness to your staff while they are working for you. It is no longer necessary to have this insurance if you are the only employee of your company.
Public liability
If members of the public visit your business premises, even if you work at home, this insurance will protect you from liability for any injury or damage to them or their property that occurs during the normal operation of your business.
Compare Business Liability Insurance quotes from a range of insurers
Other small business insurance you may consider
Income protection insurance
This will pay you a regular income if you are unable to work because of illness or injury.
Private medical insurance
This will cover the cost of private medical care for you and key members of your staff. As well as ensuring you or your staff get quick and convenient medical treatment so the impact to your business is minimised, this type of insurance can also be a popular staff benefit.
Get a small business insurance quote now
Get a quote for private or company medical insurance
g(17449548)a(920210))
What to look for when choosing insurance for your business
Watch out for policy excesses
You are responsible for paying the first amount of every claim, so make sure you know exactly what that amount equates to. You may be able to reduce your insurance premium by increasing the excess you are prepared to pay in the event of a claim.
Do you have enough insurance cover?
The amount insured is your responsibility to get right. Make sure you keep purchase receipts as proof and always supply accurate information to your insurance company. If you under-insure you won’t get full compensation if you need to make a claim. If you over-insure you will be paying more than you need to for your insurance.
Insurance policy conditions and exclusions
Make sure you understand what you have bought and are aware of any conditions or exclusions that are in force. You don’t want to wait until you need the insurance to find out you’re not covered!
Don't necessarily go for the cheapest insurance
Unfortunately it’s often not until you need to make a claim that you realise how good or bad your business insurer is. Going with reputable companies or on personal recommendation helps, but it also helps to check things such as how they handle claims and whether they have a 24 hour contact phone number.
Get more details and business insurance quotes at the Business Insurance Centre.
A guide to small business insurance
Note: This article is for information only. To discuss the insurance policies most appropriate for your business you should seek guidance from your solicitor, an insurance broker, or an FSA registered insurance adviser.
Do I need business insurance?
Small businesses face potential threats each and every day. These threats are, in many cases, unpredictable and can range from the irritating, such as a small dent on your van, to major issues that could affect the very core of your business and stop you trading. The more serious threats may range from a fire, robbery or vandalism to your premises, or a serious injury or illness to a key member of staff. To protect yourself and your small business from these threats you should seek professional advice on exactly what business insurance is appropriate for your circumstances.
Many business insurances are optional but some are a legal requirement, dependant upon the industry you work in, where you operate from, and whether you employ staff or not.
Below are some of the main insurance policies for small business you may want to discuss with your adviser.
Compare small business insurance quotes from a range of insurers
Insurance to protect your business
Equipment and office contents insurance
Whether you work from home or at commercial premises you’ll want to insure the premises, its fixtures and fittings and your general office equipment. Don’t forget to include any specialist tools or machinery you need to run your business, and portable equipment such as laptops or mobile phones. When you purchase new equipment remember to add it to your policy. You need to protect these assets against accidental or malicious damage, or damage or loss by fire, flood, or vandalism.
Business car or van insurance
Make sure your policy covers you for the type of journeys you’re making. Most personal insurance policies will not include journeys where you are transporting goods or travelling to customer premises. Always make sure your insurer is aware of the exact usage of your business vehicles so you get the right cover. You can be prosecuted and fined for driving without the correct type of insurance, and insurance companies will not look kindly on this when you come to take out or renew your motor insurance.
Get a business car insurance quote from MORE TH>N
Get a business van insurance quote from MORE TH>N
Goods in transit insurance
As well as making sure your vehicle is covered to transport goods you can also insure the goods themselves against loss, destruction or damage whilst being transported.
Business interruption insurance
Business interruption insurance covers you for loss of revenue, or trading profit, if your business is unable to trade as a result of damage to property or equipment.
Money insurance
Will reimburse you for money that is lost or stolen from your business premises, your home or whilst it’s being moved.
Compare small business insurance quotes from a range of insurers
Business liability insurance
You have a duty of care to your customers, suppliers, employees and the general public. You could be held legally liable and risk being sued if any of these people are injured as a result of your negligence or breach of this duty, so this is an area you must take advice on as some are legal requirements.
Product liability
A product is defined as any physical item that is sold or given away. If you supply a product, even if you did not manufacture the product yourself, you are responsible for any damage or injury caused by something going wrong with it. This type of insurance usually covers you for unforeseen circumstances, not for inferior products that are not fit for purpose.
Professional Indemnity Insurance
This insurance is for people who sell their skills or expertise. It will protect your business from a client seeking compensation for damages caused by taking your advice. Because there can often be a long delay between the advice being given and any subsequent problem leading to a claim it’s important to ensure you are covered at the time the compensation claim arises. This could mean insuring yourself even if you are no longer operating in this line of business.
Employer’s liability insurance
If you employ people you have a legal responsibility to have adequate employer’s liability insurance cover, and to display a copy of your certificate of insurance at all your business premises. You can be fined significant sums of money if you do not. This insurance offers you protection from liability for any injury or illness to your staff while they are working for you. It is no longer necessary to have this insurance if you are the only employee of your company.
Public liability
If members of the public visit your business premises, even if you work at home, this insurance will protect you from liability for any injury or damage to them or their property that occurs during the normal operation of your business.
Compare Business Liability Insurance quotes from a range of insurers
Other small business insurance you may consider
Income protection insurance
This will pay you a regular income if you are unable to work because of illness or injury.
Private medical insurance
This will cover the cost of private medical care for you and key members of your staff. As well as ensuring you or your staff get quick and convenient medical treatment so the impact to your business is minimised, this type of insurance can also be a popular staff benefit.
Get a small business insurance quote now
Get a quote for private or company medical insurance
What to look for when choosing insurance for your business
Watch out for policy excesses
You are responsible for paying the first amount of every claim, so make sure you know exactly what that amount equates to. You may be able to reduce your insurance premium by increasing the excess you are prepared to pay in the event of a claim.
Do you have enough insurance cover?
The amount insured is your responsibility to get right. Make sure you keep purchase receipts as proof and always supply accurate information to your insurance company. If you under-insure you won’t get full compensation if you need to make a claim. If you over-insure you will be paying more than you need to for your insurance.
Insurance policy conditions and exclusions
Make sure you understand what you have bought and are aware of any conditions or exclusions that are in force. You don’t want to wait until you need the insurance to find out you’re not covered!
Don't necessarily go for the cheapest insurance
Unfortunately it’s often not until you need to make a claim that you realise how good or bad your business insurer is. Going with reputable companies or on personal recommendation helps, but it also helps to check things such as how they handle claims and whether they have a 24 hour contact phone number.
Get more details and business insurance quotes at the Business Insurance Centre.