Something I see frequently is the number of companies who come to us for a quote, who have no existing insurance arrangements in place. This isn’t always through lack of business planning. Sometimes it can be confusing to know what insurance is required. Many start-up businesses just don’t know where to start. It can be confusing.
It’s important to understand and have the correct insurance to protect your business and employees.
Here are my tips on what types of insurance to look for as a business owner and as a client.
Employers Liability (EL) is insurance to cover your liability to employees. Employer’s Liability Insurance is a legal requirement for all businesses, not just Ltd companies. If you have workers, volunteers, helpers – you must have EL cover. It doesn’t matter whether they are paid or not, EL cover must be in force and this applies to even if you just have a 2 week work experience student join you.
If you employ contractors, there are also situations where you will require Employers Liability. A good broker will always guide you to the correct cover. If you are unsure, take advice immediately as the penalties for not holding this insurance could be serious.
Public Liability is insurance to cover your liability to third parties. If you visit clients at their offices or if they come to see you then it is wise to look at this cover. If you are a tradesman or contractor this is a good cover to look at as it provides cover against damage to third party property. It isn’t a legal requirement however many companies will request to see this before commencing any contract with you.
Products Liability is usually packaged with Public Liability, however do not assume that if you have public liability, that this cover is included.It may need to be requested. Product liability provides cover for goods and items which a business sells. If you are a manufacturer or retailer then take advice on this cover along with Public Liability.
Working from home is a home insurance policy which covers business activities. Many standard home insurers will not cover you if you undertake any business practice which is not purely clerical. If you hold stock, or have clients visiting your home and have not declared this to your home insurer, they may well invalidate a claim. It is not as simple as saying that you do not wish to have your business covered, and therefore you just won’t insure it.It is a material fact which will have a bearing on your insurance and therefore should be declared.
Professional Indemnity is cover for “errors and omissions” in your work. Are you paid to provide a service or give advice to clients? Business mentors, Health and Wellness Professionals, Life Coaches, Graphic and Web Designers are examples of the types of businesses who hold this cover. If you invoice a client for advice and services then this is an insurance to seriously consider.
There are many more specific covers for hundreds of industries across the UK. If you are not sure there are many professional brokers who will be able to advise you.
Founder of Pink Duck Insurance
020 7100 9007