tarting a business is a daunting prospect for many from the off. Delving deeper beyond the surface and reading into what you actually need to invest in can be even more overwhelming, but at the end of the day it’s essential if you want the best chance of success. While you may have a business plan in place and the funding to make it happen, your thoughts shouldn’t stop there. You need to be able to understand the risks that are associated with running a business and how to manage it so that you can stay in control. One of these is the risk of legal action and, to stay on the right side, should things go awry, you need to have the relevant business insurance options in place.
While you may already have a rough idea of what types of business insurance’s there are, it’s not surprising that many new business owners have no clue at all. Learning the differences between them early on can help you to evaluate the policies that you need to run a healthy business, while also preventing investment in cover that you could do without.
Professional Indemnity Insurance
This type of cover will have your back if a claim is brought against you by a client that you have worked with. If you provided them with work, or advice, that could be deemed negligent or detrimental, they could claim compensation against you and your business.
Businesses that would benefit from professional indemnity cover would be professions such as accountants, architects, consultants, advisors and engineers. Those who offer a service that is advice based should consider it carefully in order to protect against human error.
Public Liability Insurance
If an accident happens as a result of your work or something that your business has done, clients, contractors or members of the public could prosecute you. It could be the smallest of accidents, but if they feel they have a case, it’s best to have coverage to protect yourself and your business interests.
This type of cover is particularly important if you have visitors coming to your office, or your home. Therefore, it’s crucial if you provide a service that requires public interaction, such as hair and beauty professions, consultants and construction – the list is endless.
Employers’ Liability Insurance
This isn’t just a recommended insurance type but is a legal requirement if you hire employees. While you won’t need it if you are self-employed, as soon as you hire your first contracted employee, you will. This type of cover needs to be for at least £5million so that, if an employee suffers accident or injury as a result of your business, your back (and bank balance!) is covered.
There are various other types of business insurances that are available to you and that can be tailor-made to suit your business’ requirements. Do your research before investing in any of them so that you know which policies are right for your business.
This article was written in association with Hiscox. Whether you’re looking for information on indemnity insurance, public liability cover or other types of business insurance, take a look at the relevant Hiscox indemnity insurance and liability pages for more information.
This article was written by Roxanne Wells on behalf of Hiscox.