What cover do small businesses need?
Choosing the right cover is primarily dependant on the profession or trade that you operate in. As a starting point, the following are the core insurance covers for small business trades:
Public Liability Insurance: This provides cover in the event of a member of the public being injured or having their property damaged whilst at your premises.
Should you have to pay out for potentially crippling damages and legal costs, public liability cover will protect your company and provide financial recompense.
A claim could arise from something as innocuous as a client tripping on an uneven floor tile and fracturing their ankle, so it really is important to ensure you have adequate cover in this area.
Professional Indemnity Insurance: You will need this form of cover if you or your business offers professional advice to customers or clients.
Professional indemnity cover can protect you in situations when a mistake is made on your behalf, resulting in incorrect advice being given to a client. If the client then suffers financial loss as a result of this information, you could be faced with a compensation claim.
Even if you feel you are not at fault, you could still be forced to pay for legal defence to fight your case, which could endanger the future of your business. Professional Indemnity insurance can cover the cost of necessary legal proceedings and any compensation you have to pay out to a client.
Employers' Liability Insurance: This provides cover in the event that a member of your staff (whilst in your employment) is injured or suffers from a work related illness. Employers' liability cover is required by law if you have one or more people in your employment.
Tools cover: This is a key area to many business insurance policies. Make sure you insure your property and tools of the trade for the full value and keep receipts or other proof of ownership.
How to choose a small business policy?
There are a smaller number of business insurance companies compared to say the car insurance sector, so you should expect to receive fewer quotes. You may also find that there are brands you have previously not heard of.
To ensure you are happy with a potential insurer, read through the policy wording, and small print, and also examine the insurers that underwrite each brand.
Ensure you review your quotes in detail, and pay particular attention to exclusions (or endorsements) that will apply to the policy.
To compare business insurance from UK companies, please hit the "get a quote now" button above.