What Insurance Do You Need For Your Small Business?


With small businesses making up 99.9% of the entire business population in the UK, there’s no denying the vital role they play in supporting our economy. And as an owner, you’ll be all too aware of the daily challenges you face.

As well as turning a profit and keeping the company afloat, there are all kinds of obstacles to overcome if your venture is to prove a long-term success. There are tax requirements to adhere to, marketing campaigns to launch, recruitment processes to manage and customer relationships to maintain.

And then there is the matter of insurance. So, what types of business insurance do you need to make sure you’re fully protected?

Employers’ liability insurance

In the UK, employers’ liability insurance is a legal requirement as soon as your business becomes an employer. It must cover you for at least £5 million and it will help pay any compensation if any of your employees are injured or get ill because of work they carry out for your company. If you do not have employers’ liability insurance, you could be fined £2,500 for every day your policy is not in place.

Stock insurance

If you’re a business that sells tangible products – fruit and vegetables, electronic equipment or clothes, for example – they’re your key asset and therefore need adequate protection. Stock insurance will help cover the cost if you have to replace any goods that are lost, damaged, or stolen.

Vehicle insurance

If you use a car or van for work purposes – such as for deliveries – you’ll need specialized vehicle insurance as your standard cover is unlikely to offer the appropriate form of protection. Standard insurance will usually only cover you for commuting and any social use, but a commercial vehicle policy means you’ll be insured for journeys between meetings or to trade fairs and for carrying other employees as passengers.

Business interruption insurance

If an unexpected event occurs, such as a flood or fire, your company may not be able to operate as normal. In that instance, business interruption insurance can cover the cost of repairs, restoration and fixing any vital equipment. It’s designed to return your business to the position it was in before the problem arose.

Public liability insurance

If you cause an injury, damage or even death to a third party, public liability insurance will help cover the cost of any legal proceedings and compensation claims made against you. It provides protection for any events that occur on your premises, as well as those that happen in off-site locations.

Hopefully, you’ll never have to make a claim on any of these policies, but it’s vital to have them in place to provide that all-important peace of mind.

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