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What Insurance Do You Need For A Start-up?

What Insurance Do You Need For A Start Up Business?

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It’s no wonder that many people want to run their own business, but there are many considerations. One consideration that is often overlooked by start-ups is insurance. The types of insurance you need will depend on the nature of your business. But there are common insurance plans needed for all businesses. Property Insurance – this covers your commercial premises, or the premises you visit during the course of your work. Liability Insurance – this protects you against claims from employers or members of the public that come about as a result of things like accident or injury. Vehicle Insurance – this covers any vehicles used during the course of your daily work.

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Page 2: What Insurance Do You Need For A Start Up Business?

When Y

ou’r

e F

irst

Sta

rtin

g O

ut…

Many people dream of running their own

business. It’s a great way to be independent and

work for yourself. Benefits of running your own

business include;

Controlling Your Work/Life Balance

Choosing Who You Work With

Controlling Your Own Destiny!It’s no wonder that many people want to run their

own business, but there are many considerations.

One consideration that is often overlooked by

start-ups is insurance.

Page 3: What Insurance Do You Need For A Start Up Business?

Do I R

eally

Need

Insu

rance

?

Well, yes – you do. The types of insurance you need

will depend on the nature of your business. But there

are common insurance plans needed for all

businesses. Insurance for a start-up is essential

because; It protects you from any claims made against you

up to a certain value. It keeps your commercial property covered for

damage and repairs. Some insurance, like employers liability insurance,

is a legal requirement if you have one or more

employee.You do need insurance, but it can be difficult to know

where to start. Let’s explore the types of insurance that

might be needed for a start-up in a bit more detail.

Page 4: What Insurance Do You Need For A Start Up Business?

Sm

all

Busi

ness

In

sura

nce

Most small business insurance policies are divided up

into a number of categories including;

Property Insurance – this covers your commercial

premises, or the premises you visit during the

course of your work. Liability Insurance – this protects you against

claims from employers or members of the public

that come about as a result of things like accident

or injury. Vehicle Insurance – this covers any vehicles used

during the course of your daily work.

There are many different sub-sets of insurance for

businesses, so it is necessary to choose insurance

based on the individual needs of your business. So what

insurance do start-ups need most often?

Page 5: What Insurance Do You Need For A Start Up Business?

Offi

ce Insu

rance If you have an office that is your place of business, then you are definitely

going to want office insurance to protect your commercial property.

Depending on the nature of your business you should be aware of the

following features when searching for your policy;

Contents Cover – if the contents of your building are essential to

your business, for example if you’re a metalworker and need

equipment to do your job, then you may want contents cover for any

losses or theft.Repairs – if you don’t think that you will be able to afford any

unexpected building repairs, which can often be the case with start-

ups, then you should definitely find a policy that covers commercial

property repairs in case some come up.

Unpredictable Risks – it’s wise to insure yourself against

unforeseen events that could damage your business premises. For

example typical cover may include floods, fire, vandalism and

malicious damage.Decide what you really need, because it can vary. For example a self-

employed person may not need contents cover if they work from home

and have separate insurance for the contents of their house.

Page 6: What Insurance Do You Need For A Start Up Business?

Van Insu

rance

Many young businesses don’t need office insurance

because they travel to locations for their work and

don’t have a central office. Tradesmen are a good

example of this, for example a plumber will head out

to various locations each day taking his equipment

in a van.

If you need van insurance look for the following

features in your policy;

Guaranteed Courtesy Car – if you can get a

policy with a guaranteed courtesy car when

your van is broken down or being repaired you

will be better off as you won’t run the risk of

losing business because you’re unable to

travel. Multiple Drivers – getting employees insured

on a van can relieve the practical

considerations of travelling, and some policies

allow you to add and remove drivers online

very easily.Audio, Sat-Nav & Equipment – using a

satellite navigation system is very effective for

getting to a location quickly and easily, but it

can be quite expensive. Cover for sat-nav and

any audio or digital equipment used by your

car can be useful if it breaks or is stolen.

Van insurance isn’t necessary for every business,

but it can be very useful if you travel to different

locations for your work.

Page 7: What Insurance Do You Need For A Start Up Business?

Em

plo

yers

Li

abili

ty

Insu

rance

Let’s just start by saying that this insurance is a legal requirement

if you have one or more employees. This means if you don’t

have it, you may be breaking the law. So if you have any

employees – it is essential. The main aim of employers liability insurance is to help if a claim

from employees who are injured or become ill whilst working for is

made against you.It has been estimated that half of the UK’s small businesses are

unknowingly breaking the law by not having employers liability

insurance. Look for the following in your policy;

Extensive Cover – legally you will require cover up to £5

million pounds. Try to get more cover, depending on the size

of your business.

What Staff Does It Cover? – if you have temporary staff,

they may not be covered by your policy. Make sure you find

out what types of staff are covered so you don’t end up

facing a claim from an employee you are not protected

against. Legal Help – is there a helpline you can call in case of any

emergencies or to get advice? Good support means you’re

more likely to make the right decision.

Employers liability insurance is probably the most important

insurance a business with one or more employees will need.

Remember if you don’t have it you may face prosecution.

Page 8: What Insurance Do You Need For A Start Up Business?

Public

Lia

bili

ty

Insu

rance

This is also a very important aspect of business insurance.

The essence of public liability insurance is that it protects you

against claims from members of the public who are injured or

have an accident on your property - or in the case of

tradesman, the property you are working in.

It essentially covers any property damage or injury

compensation claims, keep an eye out for the following

features when looking for a policy;

High Level Of Protection – public claims for injury are

relatively common, look for extensive cover depending on

the size of your business. Remember, a larger business

is more likely to have claims made against it. A typical

level of cover is around £10,000,000.

Court Compensation – a good public liability policy will

compensate you for any time spent in court, which can

offset any business you might be losing.

Temporary Staff Cover – as with employers liability

insurance, you may want temporary staff covered by your

policy. This way if someone makes a claim against them

you are protected.Claims for compensation from the public from things like trips

or falls are very common, so it’s worth having yourself

protected as a start-up because any accidents could see you

facing costly legal fees.

Page 9: What Insurance Do You Need For A Start Up Business?

Profe

ssio

nal

Indem

nit

y In

sura

nce

Even though your start-up might be very well protected from any

claims that might arise, it’s still possible that something could

happen. You could make a mistake, or receive some bad advice

that leads to a wrong decision.

This is where professional indemnity insurance comes into play,

it covers you in the event that you do something wrong. Look for

the following features depending on the level of protection you

might need;Extensive Cover – once again you will want a high level of

protection to cover compensation costs.

Paid Defence – if you are required in court, your indemnity

insurance may pay for your defence. This is a valuable

feature of indemnity insurance as it allows you to seek

counsel from solicitors and other legal professionals at no

cost to you.Industry Specific Policies – many indemnity insurance

providers will offer policies specific to an industry. For

example, accountants and architects may have a specific

set of needs which are laid out in an indemnity policy – look

out for policies tailored specifically to your industry for more

comprehensive cover.

Indemnity insurance is the last line of cover, it’s there in case you

do something wrong and can be very valuable if a claim is made

against you. It’s also a great way to get some peace of mind for

a young business that might want to make bold decisions.

Page 10: What Insurance Do You Need For A Start Up Business?

Sta

rt-U

p

Busi

ness

In

sura

nce

Your business is very vulnerable in its early

stages; therefore you will want to have it

protected by insurance. Not only is business

insurance desirable for start-ups – it is also

legally required in some cases.Protect your start up early on, and be a stronger

business down the road.