Starting any new business venture is exciting, but it is easy to feel overwhelmed when considering the different business insurance options available. Which policies are you legally required to have in place, and how do you find the right solution to protect your particular business? Every business has different needs, so it is hugely important to ensure the risks you face will be covered in the event that something goes wrong.

Employers’ Liability Insurance

A good business insurance policy will protect you against losses incurred during the running of your new business. There is only one type of business insurance small businesses are legally required to have, and that it employers’ liability insurance. If your business has employees, whether temporary, part-time or full-time, employers’ liability insurance is essential to cover any compensation claims made against you by staff members, who suffer an injury or illness as a result of working for you. If you don’t have an employers’ liability insurance policy, you could be fined a maximum of £2,500 for every day that you go unprotected. Failure to invest in the right business insurance could therefore be a very costly oversight.

Public Liability Insurance

Even though employers’ liability insurance is the only policy required by law, most small business owners will choose to protect themselves against unforeseen events and financial losses with other policies tailored to their needs. Public liability insurance is one of the most popular policies for small businesses which come into contact with the general public. It covers claims made against you by people who are injured or face damaged property as a result of your business activities. In this case, legal fees and compensation costs could run into millions, so public liability insurance aims to cover these expenses whilst ensuring you can continue to run your business.

Product Liability Insurance

If anyone suffers damage or injury because of a product you have designed, repaired or supplied, there could be legal implications. Product liability insurance will cover the legal costs, as well as any compensation payments, up to your policy limit. It is not just the manufacturer who is liable for damages!

Professional Indemnity Insurance

If your new business provides knowledge, skills or advice, professional indemnity insurance is an important one to consider. It is designed to protect you against compensation claims made by a client who thinks you have made a mistake, resulting in them suffering damage to their reputation or a financial loss.

Business Contents Insurance

Every business relies on a combination of technology, equipment and other items. Business contents insurance will protect work-related belongings to ensure operations can continue in the event of theft, fire, flooding, loss or damage. A standard business contents insurance policy covers everything you keep on site, but you may need to opt for portable equipment insurance for items you take out of the workplace, such as smartphones, tablets and laptops.

Business Interruption Insurance

If your business is unable to operate due to unforeseen circumstances, business interruption insurance will cover you for the loss of sales and profits during this time. This policy may be a good option if your business is located in an area at risk of floods or fire, for example.

Management Liability Insurance

The final business insurance policy that is worth a mention is management liability insurance. If there are individuals in management positions that are responsible for keeping the business going, you can insure them against any claims made against them personally. Many policies do not cover businesses for insolvency, which is one of the biggest risk for new business owners, so be sure to find one that will tick this box.

Finding the right business insurance package is key, giving you the flexibility you need to enable your business to grow. Speak to an NIS business insurance expert for further information and advice. Please call us on 01609 773 748.