There is a lot to think about when you consider starting your own business. It's essential to do plenty of research and to think about how you will manage the financial risk. You also need to consider the types of insurance coverage you'll be requiring. We all know how expensive it can be, and that there are many different types of plans out there. Added to that, each company will have different insurance needs.
This article discusses everything you need to know about business insurance before your company is up and running.
Help Is Available Online
Fortunately, there are tons of great business blogs out there offering expert free advice and useful information on the subject of company insurance. YouTube is another place to look, and it especially suits people who want to view and listen rather than just read through tons of text.
There are many specialist company websites you can visit, too. If you need a motor trade insurance broker, you can learn about things like the MID database and view motor trade reviews. It's also possible to discover information on-road risks policies and combined policies and cover for additional occupations and drivers.
You Can Consult Insurance Companies And Brokers
They can help you understand the different policies and insurance options so that your business is protected from such things as loss of property, death, disability, or accidental damage to equipment.
Insurance companies and tied agents can only advise on their own products, whilst independent financial advisors can cover a wide range of different companies. They can help you get the best deals and also go through the paperwork with you.
Public Liability Insurance
You need this as a sole trader or business owner to protect yourself from claims made by other people if they're injured on your property or if their property is damaged. The public liability policy also protects you against complaints of noise disturbance or smells that could affect neighbouring properties.
This insurance also covers the cost of legal representation in case there's ever an injury claim brought against you. It would be difficult and time-consuming to manage this yourself, so getting public liability cover can take the stress off your shoulders. Businesses involved in things like catering, cleaning, or construction work (or who offer home maintenance services) may need to have been operating for at least 12 months before applying for public liability insurance.
Professional Indemnity Insurance
This can cover all of your professional services, whether it's a business consultancy, providing legal advice, or accounting. If you give professional advice that damages a client, they can sue you. If this happens, the indemnity insurance will pay for your legal fees and any compensation awarded against you.
This is highly important if some of your clients are big companies who could want to take action against you if something went wrong due to the information/advice you have given.
Employers' Liability Insurance
This is a common form of business insurance that must be taken out by all employers. It provides cover for the legal liabilities arising from an injury to another person (or damage to their property) while they are on your premises, due to some negligent act while work-related duties were being carried out.
This insurance covers claims made by employees and other visitors who suffer injuries caused by company negligence. It doesn't matter if you employ them directly or via a third-party agency; employer's liability also applies when contractors come on-site, so this type of policy should always be considered when employing workers in any capacity - even if you do not consider yourself responsible for their actions.
Business Buildings Insurance And Business Contents Insurance
Business buildings' insurance is a type of Business Owner’s Policy (BOP) that covers your works premises. It will protect you from many types of damage, including fire or weather-related. If you don't take out this insurance, you will have to cover the replacement cost of your building yourself.
Business contents insurance is also a type of Business Owner’s Policy, and it specifically covers the loss or damage to anything inside your work premises. It could cover anything from your office equipment, machinery or furniture to your computers. As with home contents insurance, you can also specify particular items that are of value.
Stock insurance is a type of business insurance that covers the loss or damage to your inventory. It will pay for all current and future losses as well as cover damage caused by fire, theft, vandalism, breakages, etc. Stock insurance protects against physical risks because the payouts are based on the actual cash value and not the replacement costs. Should anything happen to your stock, you will be covered up to the amount insured for, minus the excess. (The excess is the amount you choose to contribute towards a loss, should this happen).
Insurance companies that offer stock insurance will often include it in their standard policies. They often allow owners to add more coverage if they feel it necessary, or if they want different coverage for different items.
Product Liability Insurance
Product manufacturers are required to have product liability coverage in case they get sued for selling a defective or dangerous product. Without it, they could find themselves out of business in a day. Product liability insurance can also cover costs for injuries to customers who bought the faulty product. If your company manufactures, markets, or distributes any kind of physical goods, and you are worried about lawsuits related to defective products (or ones that could cause injury), product liability insurance is essential.
You should also think about personal accident insurance and getting cover for your works' vehicles. The drivers will need to be covered when they are using them for work purposes as well. Once you've done the research and spoken to the professionals, you'll know more fully what your insurance requirements are. Whilst the policies will cost you money every month, they will be safeguarding the future of your company and helping protect everyone who comes in contact with it.