No matter what sector your business operates in, or the size of your company, you’ll need to think carefully about what kind of insurance policy you’ll need for it. As with any other kind of cover, business insurance is there to protect you against any unpredictable accidents or damages, as well as physical or financial loss which might be sustained by your company or staff.
However, with so many different types of cover available, it can be difficult knowing where to start with putting a business insurance policy together. We’ve outlined some of the most important types of cover any business should have in place, and what circumstances you’ll most likely need them.
Is your company public-facing?
Almost every business involves regularly interacting with customers in person, whether in your offices, store, or the customers’ own property. Regardless of where this direct contact takes place, having a comprehensive public liability insurance policy in place can safeguard against any potential damage your work might cause to a third party. These damages can range from members of the public being hit by falling tools on a construction site to customers tripping over boxes of stock in a shop.
Although public liability isn’t a legal requirement, it can save businesses from paying out of pocket for any claims made as a result of any harm befalling their clients or passers-by. Having proof of public liability insurance can actually encourage clients to use your business. As insurance specialists Tradesman Saver note, formal certification of your policy “can help convince clients to trust in your brand” as well as offering “a handy summary of your policy” should you be asked for specifics before securing a job.
Where is your business based?
Whether you’re just starting out in a home office, or based in a swanky new office space, your premises will need to be insured to ensure the safety of its contents. According to government research, nearly 96% of all businesses in the UK are “microbusinesses”, hiring no more than 9 employees. In fact, over three-quarters of these are owner-run, with no additional staff whatsoever.
These enterprises would need home business insurance, an umbrella cover which can help protect your equipment (such as computers, furniture, and filing systems), as well as any accidents which might impact clients visiting your home office. You must take out this policy separately from your regular home insurance, as any existing policy may not cover these third party risks arising from your corporate activities.
If you’re office-based, then you will need to take out commercial property insurance, which covers similar risks, alongside offering protection of the building itself. Many insurers incorporate public liability insurance into this policy, as well as contents insurance and employer’s liability insurance. This is a legal requirement for any companies that hire at least one employee and protects against any injury claims made against your business by members of staff.
What goods or services does your business offer?
No matter where your business is based, you will need to take out further insurance to protect your company’s interests if your goods and services are deemed faulty, or cause customers or clients any physical harm. Product liability insurance can keep your small business’s bottom line safe from any unexpected claims made against it regardless of the nature of your store, whether you’re a huge commercial retailer, part-time Etsy seller, or even cannabis dispensary.
Product liability insurance keeps you covered in the event that the products or services you sell cause any third party harm or damage to people or property from the second it leaves your storage facility. This means that, whether in transit or in a customer’s home, any flaws, defects, or mistakes won’t leave you liable to financial ruin.