When you’ve already got loads on your plate, organising your business insurance can seem pretty daunting. But, as you’re probably aware, insurance is one of those things that you do have to tick off your ‘to do’ list, to ensure you’re protected against unforeseen risks while avoiding any nasty fines in the process.
And luckily, it’s not as complicated as it might initially seem. We’ve created this short and speedy guide to give you the lowdown on the insurance you must have as a small business, and those policies you should seriously consider. So, you can focus on what you do best.
Policies you must have as a small business
There’s only one policy you’re legally required to have as a small business, and that’s employers’ liability insurance (EL).
EL covers your business if one of your staff members claims they’ve suffered an illness or injury as a result of working for you. It covers any legal and compensation costs involved in defending the case.
If you don’t have EL, the Health and Safety Executive (HSE) can fine you £2,500 for every day you go unprotected. So, flouting the law could be costly.
Other policies you should consider
Even though EL is the only insurance that the law says you must have, most small business owners choose to invest in other policies to protect themselves against unforeseen events and financial losses.
Public liability insurance
Public liability insurance (PL) is one of the most popular policies for small businesses, as it covers you for claims made against you by members of the public.
We all know that accidents happen. But if you or one of your team accidentally causes injury or property damage to a member of the public, your business could face hefty legal fees and compensation costs running into the millions. This is where PL is so important, picking up the bill and keeping your business up and running.
It’s also worth noting that your clients and suppliers may request you have PL as a condition of working for them. So, it’s a critical cover in more ways than one.
Contents and portable equipment insurance
Every business has the technology, equipment and other physical belongings that they rely on, without which your whole operation would grind to a halt.
Contents cover is designed to keep the show on the road whatever happens, by protecting all your physical bits and bobs in the case of theft, fire, flooding, loss or damage. So, you don’t have to foot the bill for expensive replacements.
As the name suggests, portable equipment insurance is for all the stuff you take out and about with you, including smartphones, laptops, tablets and cameras.
Standard contents cover is for everything you keep on-sites, such as your furniture, fit-out and fixed equipment.