When you are starting a new business, it is essential that you have the appropriate insurance policies set up in case something goes wrong. This will ensure that you can cover costs and are not personally liable should the worst happen. Each business has its own specific insurance costs but some aspects that you should think about include:
Employer’s liability insurance – if you employ anybody, you must have employer’s liability insurance which is in place to protect companies against employee claims for physical damage or injuries. Without employer’s liability insurance, a business runs the risk of being fined up to £2,500 per day.
Professional indemnity insurance – this insurance is in place to cover the business if a claim is made by a customer about a mistake that has been made at work – such as a copyright infringement or the breaching of a confidentiality agreement.
Product and public liability insurance – this covers your business should something happen to one of your customers that is your fault. Product liability insurance refers to any damage or accident that is caused by one of your products, and public liability insurance refers to any accidents that occur to customers on your business’s premises.
Building and contents insurance – regardless of whether you rent or own your business premises, you must have building and contents insurance to protect your premises and their contents.