There’s so much to consider when starting a small business – so much so that insurance may not have even popped up on your radar. All that said, insurance is probably the most necessary factor in starting a business, in order to protect against those unforeseen risks (say, a pandemic), as well as ensuring you avoid any unnecessary fines.
Legally, you are only required to have one policy, which is employers’ liability insurance (EL). This covers your business in the event of an employee claiming illness or injury as a result of working for you, with legal and compensation costs covered by EL. You could be fined £2,500 for each day you don’t have this coverage.
So just the one policy required by law – nice and simple, right? Many small business owners opt for additional kinds of insurance too.
So what’s out there?
Public liability insurance (PL) is very similar to employers’ liability insurance, with the key difference that it covers any claims made against you by members of the public. PL picks up the hefty bill should any unfortunate accidents occur.
Professional indemnity insurance (PI) works in a similar way, though in this instance it is designed for claims of financial loss rather than illness or injury. Then you have directors and officers’ liability insurance (D&O), which covers the individuals with management responsibility rather than the business itself.
Contents and portable equipment insurance could also be useful for you. If you’re a small business, you’ll inevitably be reliant on technology. This insurance covers smartphones, tablets, laptops and cameras – all of which are often necessities for the modern business regardless of size.
When it comes to tech, it’s vital to protect against the instance of a cybercrime with cyber liability insurance. Cybercrime has reached ‘epidemic proportions’ according to reports. With cyber liability insurance, you are at least covered to a degree.
What about your employees?
Your employees are the foundation stone of your business, so making sure they are covered for any eventuality is hugely important. Employee life insurance is arguably one of the most valuable benefits a company can offer for all parties. That said, it’s also important to make sure the option chosen is right for your business and its employees.
If the worst should occur, life insurance offers security for the family of the employee. Life insurance may go under many various different monikers, but the security it provides is universal. In light of the Covid pandemic, we should take nothing for granted at this point, even those of us of a younger disposition. After all, life is unpredictable at the best of times.
As with most things in life, it’s vital to consider the individual needs of each employee. After all, it could lead to employees paying a great deal more than they would like for unsuitable coverage in terms of their personal needs. Not all employees will have a family that needs security should they pass on, whereas others might have a sizable family. Ultimately, this is why getting the best advice on which policies are best can put your employees ahead of the game.