Business liability insurance
A question “Do I need liability insurance for my small business?” is usually asked by those just starting up but surprisingly established businesses often ask the same.
Some liability insurance is required by law, such as employers’ liability while other requirements will depend on your risk appetite or the requirements by your clients or regulatory bodies.
The next question often asked is “How much is liability insurance for a small business?”. It’s difficult to provide an accurate answer. Small business liability insurance cost will depend on your profession, turnover, claims and industry. It can start from as little as a few pounds a month.
Small business professional indemnity insurance
Sometimes known as small business professional liability insurance, this cover protects businesses that offer their skills and expertise to solve their clients’ problems.
If you are one of those businesses, professional indemnity insurance is an essential cover to provide you with legal defence if a client accuses you of causing them a financial loss.
A financial loss comes in many different forms. An accountant can misadvise on their client’s tax return and as a result the client now demands financial compensation.
A client may demand more work worth thousands of pounds for free if they feel what you have delivered to date is not satisfactory.
A financial remedy may be asked of a personal trainer if their advice led to a client injury who now wants money to cover further treatment and loss of earnings.
Small business public liability insurance
Any self employed professional or small business in physical contact with their clients or third parties during the course of business activities are likely to require this cover.
Property damage and injury claims are common and while compensation may not always be awarded, it is the cost of the legal defence that can be crippling for a small business.
Public liability insurance for small businesses covers all legal costs and possible payout if you are deemed liable.
Employers’ liability insurance for small businesses
Most businesses, even the small ones, that engage employees on a full time, part time or contract basis must have employers’ liability insurance by law. This also applies to limited companies with more than 2 directors.
As an employer, you have responsibility under the law to provide a safe working environment for your workforce and employers’ liability cover protects you if you’re accused of failing your duty of care.
Directors & officers liability
As a business owner and director you have responsibilities in running your business in a certain manner.
Certain parties - investors, mortgage providers, banks, regulators - expect you to do exactly that might believe that you have been negligent or careless.
One of these interested parties could present you with a claim of mismanagement, incorrect conduct, being inaccurate with facts surrounding your business or saying the wrong thing in the public domain.
D&O, also known as management liability insurance, protects you from such accusations by providing legal and financial protection against legal action, fines, penalties, and disqualifications whether paid by the business or you directly.
Premises & equipment business insurance
If you need premises, stock or certain equipment to carry out your business activities, then you might need certain types of business insurance to protect those assets.
Fires, flooding, theft and vandalism aren’t unfortunately uncommon and the repair or replacement costs could become financially unbearable, should the worst happen.
Small business content insurance
This is a cover that protects your stock, goods, fixtures and fittings against physical loss or damage including theft. Typically this type of insurance either offers to pay for the cost of repair or replacement or new for old.
Buildings insurance is usually arranged by the landlord if you are renting your business premises. However, if you’re an owner, commercial buildings insurance would be essential.
Business equipment insurance
Protecting your more expensive business equipment with insurance could be the difference between you being able to carry on with your work or having to over extend the limit of your credit card to secure another piece of essential equipment.
Business equipment insurance, especially for portable items, can be more expensive but it’s worthwhile considering if, without some of your gadgets, you can’t run your business.
Small business interruption insurance
This cover is useful to businesses that would suffer if they had to close down their business location. Places like shops, fitness clubs, health & beauty salons and others.
This could be a consequence of fire or a burst pipe. You will recover the cost of repairs under your premises insurance but while you wait for repairs to take place, you may not be able to trade.
You can expect financial help with the loss of revenue your business has suffered and the increased costs of working while you are getting back on track with your business running.
Very few business insurance providers recognise that businesses can suffer just as significant interruption to their operations from not being able to trade online. If you’re an online business, you will need to check the wording carefully to understand whether it could cover your circumstances.
Business cyber insurance
Small businesses are just as much in need of cyber cover as the large ones. Hackers will attack anyone who appears to be vulnerable to their efforts.
In fact small businesses are usually easier as they don’t tend to spend as much on cyber security.
If you hold customer data, rely on your website for business, or store confidential client information, you may wish to consider this cover which will assist you with the data recovery, get you up and running and some might pay ransom if demanded.
Small business life insurance
As a small business owner, you’re key to it. Without you, there is no business and possibly your family or those close to you would be left without income.
Life insurance isn’t protection of your life but rather a cash injection for those who rely on you. There are many forms of covers which are considered a business expense and can be written off against your profits.
Small business insurance costs
As you would expect, the answer to this question varies dramatically because each business is unique and business owners have a different perception of risk.
Getting affordable small business insurance is usually important to owners. Look for small business insurance quotes online as that is usually the best place if you want to keep costs down.
Technology has enabled providers to offer small business insurance quotes in a streamlined way stripped of extra charges which has had a positive impact on business insurance premiums.
You will often find that buying directly online is cheaper than engaging a broker.
