Less than one in three (30%) small to medium sized businesses (SMEs) believe they are insured in the event that a professional mistake leads to them being sued according to a Hiscox survey*, which also found that only 22% of SMEs were aware of what insurance is available and what risks can be covered by company insurance.
Running a small business can be very rewarding but also stressful when you consider the potential threats to your business. Understanding what those threats are and how you manage them is critical to your success.
Your guide to company insurance
What happens if you have a problem with your client?
If your business makes a mistake and suffers a legal claim from a client, the legal costs and compensation can be significant. Professional indemnity insurance will help protect you in the event of a claim and is often a contractual requirement.
Cover for your visitors
If customers, clients or other members of the public come to your place of work, or you go to theirs, you could consider public liability insurance. It covers you against claims for damage caused by you or your business, such as personal injury or damage to equipment. It also covers legal fees that arise out of claims you have to defend.
It’s a legal requirement for most businesses with employees to have at least £5 million of employers’ liability cover in place. This is designed to meet the cost of damages you may have to pay and any legal fees if employees are injured or fall ill because of their work.
Have you considered what would happen to your business if you suffered a fire or a flood at your premises or had valuable office equipment stolen? Office insurance can protect your contents and the building itself. You can also add on business interruption insurance which will compensate you for loss of income following an unforeseen circumstance, such as a flood, stopping your business operating as normal.
Be aware of cyber and data risks
If your business holds customer data or is reliant on computer systems, cyber and data risks insurance can help protect and support your business if it experiences a data breach or an attack by a malicious hacker. It provides comprehensive cover, simplicity, reputation protection and a trusted partner in the event of a claim.
We offer comprehensive company insurance to small businesses whether home or office based, backed up by our knowledgeable and efficient UK based claims staff.
*Hiscox survey conducted among 970 SME bosses of European companies with less than 50 employees in February 2010.