SME owners have so many things to think about, and insurance isn’t always the first thing on your mind. However, having a full scope of insurance coverage is necessary for your business. It can give any the public you deal with a sense of confidence and safety, can protect your business from catastrophic failure and can give you peace of mind to know that you are covered for any eventuality.
In this article, we have rounded up some of the most common types of insurance your business might need.
Public Liability Insurance
This type of insurance protects you if someone is injured, or their property damaged because of your business activities or while on your business premises.
Even though this is not compulsory if you are self-employed, public liability insurance is necessary if you have people coming into your business premises. Businesses that regularly deal with the public in a hands-on fashion, for example beauticians, hairdressers and barbers or masseuses should consider this insurance as a high-level priority.
Professional Indemnity Insurance
If you offer any sort of professional service, then Professional Indemnity (PI) insurance will help protect you if anything negative happens because of your advice. For instance, if you give investment advice to a client, and the client loses their investment. PI insurance will protect you from their claims, as well as protecting you against slander, libel and breach of contract.
This type of insurance is very important if you are self-employed and offer professional services. Business management and training consultants, IT contractors, financial contractors, energy sector contractors and engineering contractors are all types of professionals who are contractually obligated to have PI insurance.
Key Person Insurance
Key Person insurance is an insurance policy that covers a key executive’s life in your organisation. In this case, the company is the beneficiary of the plan and pays the insurance policy premiums. If the ‘key person’ dies, then the company receives the payout.
In many small businesses, it’s the owner who holds the company together so if our business has one or more managers who are responsible for the upkeep of the business; then this is an insurance policy you should consider.
Building and Contents Insurance
Unless you’re running your business from your home, you will likely need a place from which to operate. Buildings and contents insurance help cover the cost of damage to your premises and contents if something goes wrong.
This is vital insurance for small businesses because damages to business property can have a significant, negative effect on a growing business if there is nothing to fall back on. Of course, this type of insurance is not mandatory, but where you need a mortgage, your lender will require it.
Employers Liability Insurance
When you have full-time employees, casual staff, temporary staff and even contractors, Employer’s Liability insurance is a legal requirement. If any of your staff get injured in a workplace accident, this insurance will cover you against any liability, and for any costs that may be incurred, including medical costs and loss of income.
If it is found that you don’t have Employer’s Liability Insurance, you can be fined £2,500 every day you are not properly insured. You can also be fined £1,000 if you do not display your EL certificate or refuse to give it to inspectors when they ask.