As a startup business owner, many things will be on your mind and money is will definitely be tight, so the furthest thing on your mind is protecting yourself against the possibility of a disaster that may happen in the future. But this should be one of the most important steps in your new business, as it takes only very little to damage all you have worked hard for.
This short article will serve as a guide that will help you take that crucial step, and choose the right insurance for your new business.
Why take out insurance for your startup?
Despite the best made plans, mistakes are bound to happen and plans fail. Taking out the right business insurance provides the protection your startup needs to create a secure, compliant and successful venture.
There are a number of insurance options for every size of business, including employer’s liability insurance which is required by law. Here are some of the major options that should be on your list as a new business.
Employers’ liability insurance
As already pointed out, employers’ liability insurance is required by law for businesses in the UK, and is therefore a crucial step towards compliance.
Employers’ liability insurance covers your business in the event that an employee becomes ill or get injured as a result of the work they do in your business. As long as you employ one or more employees in your startup business, it is mandatory to have this insurance.
The exact nature of this insurance usually varies between insurance providers, but a typical employers’ liability insurance provides a minimum cover worth £5 million.
Public liability insurance
Another important insurance requirement for your new business, public liability insurance provides cover for your startup in the event that you or a member of your team cause damage to a third party’s property. This insurance also covers damage to your premises that occur in the process of carrying out normal business activities.
While public liability insurance is not mandated by law, it can come in handy in the future.
The building where your startup is housed is essential to the existence of your business, this is why it is important you put it in your insurance plans when considering insurance options for your new business.
Building or property insurance is not concerned with the market value of your property, rather its re-build value, which is what the insurance provider will pay in the event of a total loss. This type of insurance also includes fixtures, fittings, and every other thing appurtenant to the building – particularly important if you’re wanting to protect a physical shop.
Business interruption insurance
Business interruption insurance covers for loss of income that you will incur in the event that your business is unable for function due to one reason or another.
For instance, if you suffer a fire outbreak in a section of your premises that restricts your ability to trade or do business, this type of insurance will make sure you are able to meet your responsibilities until production re-starts.
Even though business interruption insurance is not a compulsory part of your business insurance, it is something you should also consider.
Failing to plan equals planning to fail, therefore choosing the right insurance cover for your startup is essential if you are serious about providing protection for unforeseen expenses, such as legal fees, disability compensation and a host of other issues that can arise during the course of your business. Hopefully, this article has provided insight that will help you choose the policies that would work for your new business.