Small business startup insurance
Every business, irrespective of its trade or profession, will have some liability - towards its customers, suppliers and possibly the public and employees.
If your business gives primarily advice to its clients then the cover you will need to protect yourself from the cost of possible legal claims is professional indemnity insurance.
Every business that has face to face contact with its customers, deals with the public or its activities involve third party property would be unwise not to invest in public liability insurance.
The third legal cover, required by law, is employers’ liability insurance which every business that employs staff must have.
Property, content and business interruption insurance depends on the nature of your business. If you own or rent premises and they’re essential to the success of your business, you are likely to need to consider these covers.
The best insurance for a startup company
Now that you know the name of the insurance cover you need is called, the next step is to take to the internet. Typing your profession or trade plus the name of the insurance cover is likely to yield you more relevant results, especially if you put the phrase in double inverted commas.
However, not all these insurance providers are likely to be keen on startups. That’s a word worth adding to your search phrase because the UK insurance market is conservative when it comes to business newbies. You’ll find that if you select 0 trading years, you may not be able to get a quote online.
Look past the largest insurance providers. They can afford to be choosy whereas smaller insurance providers tend to be more understanding of your circumstances and generally offer better customer experience because of the personal touch they offer.
Start up business insurance costs
There is the premium for your insurance and there are, sometimes, extra costs. Before buying you should always know what those are. As a startup you’re likely to experience changes in your business activities on a monthly if not daily basis and you may wish to spread your costs.
As you are moving through the online questionnaire, keep an eye on the price. Sometimes costs such as a policy fee or APR is added to your final price. If you’re on the phone, ask those questions. Then you really want to know what happens if you need to update something during the policy period - such as reporting a different turnover, changing the business name or your personal details.
Some insurance providers base their business model on extra costs. The initial premium seems often low but they eventually make their money by charging your fees when you make changes or renew.
Renewing your business insurance
Be as savvy as you would be with your car or home insurance. Shop around every year when your business insurance comes up for a renewal. However, sometimes, especially if your business is going through changes, it pays off to look sooner. If your current insurer is trying to increase your price, refusing to reduce because you’re working less or charging you unreasonable fees, then it’s time to search for a better deal.