Business insurance you didn’t know you needed

Business insurance you didn’t know you needed

If you are a business owner, whether you’re a seasoned professional or just getting started, you’ll be familiar with the need to have insurance in place.

Unlike van or car insurance your business insurance will likely be made up of a number of different products based on your business, your industry and the size of your company. Here we’ll shine a light on some of the covers you may not have considered, and some you definitely should.

Getting the cover you need at the best price

As a business owner or sole trader it’s you who is responsible for ensuring your business has the right insurance in place. But where do you start? In some cases insurance can be a legal requirement, in others it may be a contractual obligation. What’s always true is that having the right cover will protect your business should you need to make a claim, or have a claim made against you.

Making sure your cover is tailored to your needs is important for two reasons, firstly it’ll give you a better chance of a successful claim should you need to make one and secondly there’s a good chance you’ll pay less if you’re only paying for what you need.

Covers you didn’t think you’d need

There are some covers that are fairly standard, however there are plenty you may not think you need.

If you have employees

Whether you have one or one hundred employees you’ll need to get employers liability in place, this is the only cover that is a legal requirement in the UK. Even if your employees are part time or you’ve taken on an apprentice you’ll need this cover in place, although if you are hiring family members you may be exempt.

In addition to getting covered you’ll need to make sure you have an employers’ liability insurance certificate as proof. Not having your certificate or not being able to produce it when prompted can result in a fine of up to £2,500 per day for each uninsured day.

It’s important to review your policy whenever you hire new staff to make sure they are registered and if you are likely to hire lots of short term workers or apprentices you may also want to look out for covers that include a set level of days’ cover for temporary employees, who do not need to be registered.

If you deal with any data

The need to take out cyber insurance may not seem immediately apparent, particularly if you don’t consider yours a tech business. However if you take credit or debit card payments, deal with any customer data online, rely on computer systems to do your job or have a website or social media account for your business cyber liability could be a sensible investment.

Beyond covering you against malicious activity such as hacking and extortion, cyber also covers compensation you have to pay due to defamatory content or intellectual property infringement on your website, social media or online advertising. This may be more common than you think, if you accidentally use an image in a social post that you don’t have the rights to.

If your work includes contracts

Unpaid fees is one of the biggest challenges for small businesses, professional indemnity cover could cover fees owed in the event of non payment due to errors or omissions in your work. This cover protects businesses from a range of things, such as mistakes in services they provide, compensation claims, contract disputes and IP disputes.

If you’re looking for funding

It’s common for investors interested in a company to make directors & officers insurance, otherwise known as management liability, a must-have requirement. This protects directors and officers from claims of mismanagement.

Covers most businesses require

Aside from the covers you may have not considered there are a few that most businesses should consider, typically included in all business insurance policies.

Public liability

This is the most common cover for businesses whose operations involve contact with members of the public. The product is designed to cover any claims made against you for injury or property damage as a direct result of your work.

Whilst not a legal requirement you may find that some clients expect that you have public liability as a requirement to enter into a contract with you.

Personal Accident

If you work in a trade that often involves physical demands and manual labour picking up an injury could have a serious impact on your ability to work. If due to injury you find yourself unable to work in the same capacity for some time - perhaps even permanently - personal accident cover can provide a cash benefit.

Do you need insurance?

The importance of business insurance is best summarised by asking yourself “could you afford the cost of a claim against your business?”

There are three main reasons you should consider getting business insurance in place The cost of any claim will likely far outweigh cost of purchasing your insurance If you have staff insurance is a legal requirement and you could be fined if you don’t have it in place, with the certificate to prove it Trade associations and clients often require adequate insurance to enter into a relationship with your business

How to find the right cover

There are many different ways to purchase your cover including purchasing directly via an insurer, more broadly via a comparison site or via a broker or financial advisor. In addition cover may be provided as part of another service such as a bank account.

What’s important is to do your research and make sure your cover is fit for purpose and tailored to the unique needs of your business, this can be more cost effective as you’ll only purchase what you need. In addition the flexibility of being able to update your policy online as your business grows or changes will make the admin of the task a lot easier.

Once you’re covered it’s important as the business owner that you review your policy regularly and keep up to date, so you’re covered should you need to make a claim at any point.

Honcho business customers can check out special deals on the range of business insurance products offered by our partners Superscript.

Simply head to the Honcho app, tap on Business Services, and then Business Insurance.