By Adam Townley, Townley Insurance Brokers
I am regularly approached by start-up businesses who wonder what insurance they actually need. I thought it worthwhile forming the basics into a blog post.
The only legal insurance requirement is Employers’ Liability and only then when you have employees. There are exemptions – the most applicable perhaps being when all the employees of the business are closely related, e.g. husband and wife, parent and child etc. – but that exemption doesn’t apply if the company is Limited.
So, all other insurances are good practice and in many instances will provide reassurance to the client/customer of the business in question. You wouldn’t want to let a Builder loose on your house, for instance, unless he or she had Public Liability cover to compensate you in the event of damage.
The following are the most common requirements for a new business:
Contents – computer equipment, desks etc in an office, machinery and plant in an Engineering or Manufacturing business, tools of the trade in a Contracting business.
Stock – cover against loss through theft, fire etc.
Business Interruption – crucial if you rely on having a premises to run your business
Public & Products Liability – covers you in the event you cause Bodily Injury or Material Damage to a Third Party
Employers’ Liability – covers your employees in the event they’re injured at work
Professional Indemnity – covers Financial Loss where you provide advice, design or specification for a fee
Most of the above can be purchased in isolation but it’s often cost-effective to buy them as part of a package. You’ll then find that other covers will often be included automatically – cover for your Shop Front, Money cover, Goods in Transit cover etc.
Many of these insurances will be more cost-effective than perhaps people suspect and we are always happy to simply discuss someone’s requirements in the first instance on a no-obligation basis. We can tailor a package to that person’s needs at that point in time and by regularly reviewing their cover it can change and grow as their business develops.