Small Business Insurance
You will need to seek specialist advice on exactly what type of insurance is relevant to your specific business. Examples of the type of insurance that may be applicable include:
Employer's liability insurance - As an employer you must, by law, have employer's liability insurance. A copy of the relevant certificate of insurance must also be prominently displayed at all places of work.
Fire and other perils insurance - Adequate insurance to cover the possible destruction of your buildings and contents through fire is essential. You should also ensure that cover is in place for other perils, for example storm damage, flooding or explosions.
Theft insurance - This type of insurance will only normally cover thefts where a forced entry has been made. It does not usually cover such events as thefts by employees. If you do wish to insure against this you will need to mange additional cover.
Consequential loss insurance - If your business does suffer a major catastrophe which effectively stops you trading for a time this type of cover will insure against the loss of profits. It may also cover your employee costs and the costs of establishing interim trading premises.
Professional indemnity insurance - If you are in a service-based business offering expert advice, it is essential that you have adequate professional indemnity insurance to cover you against claims by your clients for damages caused by your negligence. In some cases, it will be required in any event as a condition of your membership of a professional body.
Key person insurance - If you have one or more key members of staff on whom the business depends for success you should consider key person insurance. This will pay out a lump sum in the event of that person's death.
It is advisable to consider personal insurance to cover yourself in the event of accident, sickness or death. If you are trading on your own you must remember that you may be unable to earn an income should anything happen that could affect your health.
