Organising insurance for small businesses
As a small business owner, you probably have enough on your plate as it is. From managing customers to maintaining compliance, small business owners have a long list of responsibilities to deal with. Whilst you may be able to put off some of your tasks until tomorrow, organising insurance is something that simply cannot wait.
Types of insurance for small businesses
Before you start comparing insurance for small businesses online, you need to understand the different types of insurance that are available. After all, you might find that some insurance policies will not meet your business requirements and could end up costing you more down the line.
Employer’s liability insurance
Employer’s liability insurance is one of the only forms of coverage that is mandatory for small businesses. This will cover your business if an employee suffers from an injury whilst working. If you don’t have employer’s liability insurance, the Health and Safety Executive could fine you up to £2,500 every day that you go unprotected, which could prove financially devastating for your small business.
Public liability insurance
Public liability insurance is often recommended for small businesses, particularly those that are business to customer (B2C). This type of coverage will protect your company should a claim be made against you by a member of the public. For example, if a customer slips over in your store, you could be liable to pay them compensation.
Cyber liability insurance
Cyber liability insurance covers your small business in the event of a data breach. You may think that only large corporations are targeted by hackers, but even small business can fall victim to cyber-attacks. If you need to collect contact details or payment information from customers, it’s important you have cyber insurance, to protect both your customers and your business.
Professional indemnity insurance
Professional indemnity insurance is recommended for small businesses that offer advice lead services to customers. Should you make an error or omission that impacts your customers, your professional indemnity insurance will help to cover the cost of compensation. Making a mistake of this kind could have a knock-on effect on your own business’s reputation, so it’s important you have the right coverage in place.
Contents insurance
Contents insurance is designed to cover all property related to your business, whether you operate from home or from a designated premises. This type of coverage will protect any equipment that you need to run your business, such as a computer, laptop or tablet. Should any of your belongings be lost, stolen or damaged, contents insurance will cover the cost of repairs or replacements.
