Starting a business gives individuals a superb opportunity to become their own boss and take on a new challenge. It is a labour of love that requires the investment of time, energy and money. So you might be wondering, ‘what’s the best way to protect my business and help ensure it succeeds?’
Business insurance offers a safety net that can help protect your business from financial losses. Finding the right cover for your business lets you focus on your business and helps to provide reassurance that you and your business are being taken care of. Here we outline a few important types of business insurance that you should consider if you’re in the process of starting your own business.
Public Liability Insurance
Public liability insurance protects your business from compensation claims and legal fees for injuries, death and property damage caused by activities carried out by your company.
Public Liability Insurance covers:
- compensation claims for third-party injuries or property damage
- The cost of repairs to third-party property
- Legal expenses for claims made against you
Public liability insurance is not a legal requirement, but you may find that your job opportunities are limited without it. This is because, in many industries, it has become standard practice to have it, so it has become a requirement for clients.
Employers Liability Insurance
All jobs carry some risk, and as hard as we try accidents or illness occasionally happen. Employers Liability Insurance helps to protect employees and is a legal requirement for anyone with one or more employees.
Should an employee receive an injury at work or become ill as a result of their work, Employers Liability Insurance covers the cost of damages, compensation and legal fees.
Who is covered by Employers Liability Insurance:
- Full-time and part-time employees
- Temporary staff
- Apprentices and people on training schemes
Employers Liability Insurance may not be required if:
- All employees are direct family members
- Your employees work and are based abroad
Professional Indemnity Insurance
Professional Indemnity Insurance protects the policyholder from legal costs and expenses if a claim were to be made against them for the following:
- Negligent or inadequate work that results in a financial loss to the client
- Breach of contract, copyright infringement or violation of a confidentiality agreement
- Defamation that could harm the client’s reputation
- Offering poor professional advice
Without insurance to protect us, these mistakes could be costly. For example, you may recall the ‘Walkie Talkie’ building that was found to have a design flaw when sunbeams would reflect off the concave glass panels and damage the cars parked below. In this case, Professional Indemnity Insurance would have covered the costs of poor design.
Professional Indemnity Insurance is important for any business owner who offers a service or advice to their clients. Many contracts stipulate that designers or contractors have Professional Indemnity Insurance in place.
These are some of the predominant covers that can help protect your new business against intangible liabilities. Your business may also require Contents Insurance and Building Insurance to help protect your tangible assets. Ask your friendly insurance broker for more advice.
Setting up a business is an exciting time for a business owner. Making sure you have the right cover helps to create a strong foundation for your business to thrive. At Cascade Insurance, our experienced insurance brokers offer personalised advice for businesses across a wide range of industries. Our helpful and knowledgeable team will support you to find the cover that’s right for your business. We like talking to our clients – pick up the phone and speak to us today on 01233 512548.