What kind of insurance does your small business need?
Setting up business insurance can seem like an overwhelming task for many small business owners. With all of the other challenges associated with managing a business, it’s understandable that setting up insurance may be one of those jobs you are putting off for fear it will be arduous. However, business insurance is essential to protect your company from risks and fines, so continue reading to discover which policies you should consider.
Employers’ Liability Insurance (EL)
This policy is the only one that is a legal requirement for small businesses. EL offers cover for your company should an employee claim they have been injured while working for you. Not only will this policy cover the costs associated with such a legal claim, but it will also prevent fines. The Health and Safety Executive can fine you £2,500 each day that you are not covered, so it is in your best interest to get this insurance quickly.
Public Liability Insurance (PL)
While not essential, this is one of the most popular policies for small companies. It is similar to EL because it will protect your company from legal fees should someone be injured. However, these policies differ in their scope. PL focuses on damage to property or injury to a member of the public rather than employees.
While PL coverage is not a legal requirement, not having it can impact your company. Some clients or suppliers might include having PL in their business terms, so you could miss out on opportunities if you choose not to get this policy.
There are other forms of insurance that might be worth considering for a small business. Things like contents and portable equipment insurance, cyber liability insurance, directors, and officers liability insurance can all be valuable policies for small businesses. It would be best to consider your needs and processes to determine what coverage will work best for your company.
Still feeling overwhelmed?
If sorting out your businesses’ insurance still seems daunting, or you simply have too much on your plate to manage the policies, consider seeking expert help. For example, you could consult with a company like insurancesurrey.co.uk. Insurance Surrey and other reputable organisations will evaluate your insurance needs and recommend policies that suit them. Taking this route can remove all the stress of business insurance and will ensure that you won’t miss any policies that could prove essential.
Overall, it is critical to consider insurance when managing a small business. Not only can this save you significant sums when it comes to legal fees and replacing lost or damaged goods, but it can even be a legal requirement in the case of EL. Finding policies can be a complicated task without the proper knowledge of what is required of you, so it is critical to do your research to pick the right insurance. Otherwise, you could consider outsourcing the job of sorting out your business insurance to a professional firm. This might be a slightly more costly option but will ultimately guarantee that you have the right coverage.