Insurance is an essential part of protecting your business, covering you against risks ranging from natural disasters to angry customers.
Some cover is required by law and some comes as an optional safeguard against threats to your business.
Knowing which is which, and where to find them, is part and parcel of choosing the right small business insurance policy.
Legal essentials
Employers’ liability insurance is generally required by law for everyone with employees in the UK. It covers you against claims for compensation if an employee is injured or becomes ill as a result of negligence in the workplace. When deciding on a policy, consider:
- The amount covered. AXA provides up to £10 million as standard.
- The assistance offered. Some policies include access to legal advice in some circumstances.
- The extras. Some policies can cover temporary employees, for example.
Protecting property
Buildings insurance will often cover damage to property you own, but if you’re in retail you could look for specialist shop insurance cover. This protects against things like damage to your stock, although you may need to seek out specific protection for high-value items.
Many businesses also rely on a trusty van. A dedicated business vehicle policy like AXA's van insurance could help you stay on the road in the event of things like theft, damage or breakdown, for example.
Covering your back
Any customer-facing business should also consider the risk of injuring or badly advising their clients. There are two key protections against this:
- Public liability insurance, which covers your legal costs and business losses resulting from accidents that happen to anyone at your premises or as a result of negligence in your work environment.
- Professional indemnity is designed for advisers and professionals. It protects you if your client feels they have suffered financial losses because of negligence or mistakes in your advice or services.
Covering your concerns
You can tailor most policies to include the things that are relevant to your business, but sometimes you’ll need to buy separate insurance. For example, you may need to insure company smartphones against theft or damage, or plan for separate healthcare cover if illness and absenteeism are a worry.
Ultimately, it comes down to the protections that are right for your own business. If you know what you need, a clear search can yield the perfect policy.
