It’s easy to overlook sorting out your insurance cover when starting up a brand new business. Ideally though, you shouldn’t really be stepping one (metaphorical) foot into the marketplace until you’re adequately protected.
Arranging insurance cover for your new start-up venture isn’t as simple as ticking from a selection of boxes though. There are a whole host to choose from for businesses of all shapes, sizes and natures. Some insurance companies will even offer tailored plans which are personalized just for you and your needs.
That said, we’ve made a list of the most common types of business insurance as a starting point for you to work from. We also have a guide to help new businesses get started.
Public liability insurance
This type of cover is essential if your business operation means you will be visiting customers out in public, or if they will be coming to your premises.
It’s designed to make sure that you have protection in case of claims made due to damage or injury whilst in contact with the general public. For instance, if somebody was to slip and injure themselves on a wet floor in your office or business premises.
Product liability insurance
If you manufacture products for use by the general public, you will need product liability insurance. No matter how meticulous you are about ensuring your goods are safe and compliant, it makes sense to have insurance in place. That way, you have protection in case of damage claims as a result of using your products.
Professional indemnity insurance
This type of insurance is there to protect your business in case of any claims against you regarding negligence, mistakes or failure to perform or deliver.
This will be specific to the nature of your business as different sectors will carry different kinds of risks around errors & omissions (E&O).
Employers’ liability insurance
As a start-up, this may very well not be applicable to you just yet. But as soon as the day comes when your business employs somebody, you’re going to need to arrange employers’ liability insurance cover. In fact, it’s a legal obligation to do so.
You will need at least £5 million of cover or else you could be facing fines of up to £2,500 for every single day you aren’t protected. It’s worth noting though that you aren’t legally required to have this cover if you are employing immediate family members.
Stock insurance
This type of policy will help cover the cost of any stock you might lose due to theft or damage. Of course, the cost of this type of insurance protection will vary depending on the value of stock you’re looking to cover.
Other types of essential insurance cover to consider for your start-up:
If you would like more information about how we can support your start-up business, you can talk to one of the team. Call 020 3026 8614, or email us on info@cloudtaxltd.com
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