Any type of insurance is designed to be a safety net. From events and motoring to travel and pet cover, each policy is there as a form of protection if things don’t go to plan – and business insurance is the same.
There are different types of insurance available for businesses. This is because there is a lot of risk involved in setting up a company and there are different areas that could require cover. If you’re considering launching your own SME or small start-up, you might find that the different policies are confusing.
To help you work out what could be the most suitable cover for your business, read on. We look at the different insurance types that are available so you can work out your next steps.
What is business insurance?
Business insurance is taken out to protect against different risks, such as damage to a company’s premises or lawsuits that could be brought.
There are different products available, some of which are specifically tailored business insurance packages to suit different sectors. These make it easy to obtain the cover needed for the area you’re operating in.
Employers’ liability insurance
This cover is a legal requirement if you employ one or more members of staff and you could be fined if you don’t have it in place. It ensures you can cover compensation costs should an employee get hurt or fall ill through the work they do for you. It applies to full and part-time staff, as well as volunteers and casual workers.
Public liability insurance
If your business has injured someone or damaged their property in some way, public liability insurance will cover you if a claim is made. For instance, if a member of the public is hurt because they’ve tripped on some loose wires in your shop.
Product liability insurance
Should you have sold someone a service or product and they’re injured or their property is damaged as a result, product liability insurance will cover the compensation for this claim. For example, if someone buys food from your catering outlet and gets food poisoning.
Business contents insurance
As well as protecting you from issues that arise with customers, it can be useful to look at how you’ll protect your own business. Contents insurance will cover you if anything happens to your equipment or possessions on your work premises.
As well as the cover listed, other policies that might be suitable include professional indemnity insurance and business interruption insurance.
Take your time to research the different types of insurance that are available. What works for one company might not be quite the right fit for your enterprise, so read up and see what you might need. And don’t be afraid to adapt and change as your business grows.