When should a business look at getting insurance?

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If you’ve just started a new business, it’s important to have an understanding of all the insurance policies you must have and are aware of the optional extras that may help your business through difficult times. 

With around 10% of businesses failing within their first year, you’ll want to make sure your new business is provided with solid foundations by taking out the right insurance.

Fortunately, we’ve put together a list of essential insurance policies you’ll need and when the best time to get them is.

Employers’ liability insurance

This is the only policy that your small business is legally required to have, and it must be obtained before your company commences any work. This insurance will protect you in the event of claims made by staff members who allege that they have suffered an injury or fallen ill under your supervision. It will cover any legal expenses and, should it come to it, compensation to employees.

The Health and Safety Executive can fine you up to £2,500 for each day you operate without it, which could be potentially crippling for a new business.

Public liability insurance

This is one of the more popular optional insurance policies that people take up – particularly trade businesses. This insurance covers you from any claims made against your business by a member of the public should you cause any damage while working.

It is important to know that different businesses will have more tailored policies for the work they do. For example, an electrician will look at electrician public liability insurance whereas a plumber will opt for a different kind. Accidents can always happen, so it’s best to get this insurance before your business starts operating.

Contents and portable equipment insurance

A lot of businesses have equipment that they will not be able to function without. Should those items break down or be stolen, contents and portable equipment insurance is a great option so you can get replacements fast.

This insurance can be picked up at any point and you may choose to obtain it as your business begins to grow and the amount of equipment you have increases.

Professional indemnity insurance

Once you begin working with customers, you may find that they are not always satisfied with your work. This could be because of a mistake on the job or the customer may feel that your work will cause a financial loss to them.

Professional indemnity insurance ensures that your legal and compensation costs are covered in the event of a claim. If you get this insurance straight away your back will be covered from the start.

 

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