Every small business is different to the next – and your insurance should reflect that by being tailored to suit your specific needs. To help you, here’s a quick breakdown of the varying small business insurance options, to give you an idea about what might work best for your business.
What risks should your business insure against?
Think about the nature of your business and the potential risks that could arise as a result of your day-to-day activities. Do you have valuable stock at risk of theft or damage? Could a client or member of the public be injured by a service you offer? Is your data at risk of a security breach? All of these answers will influence the type of cover you choose.
Why do you need public liability insurance?
Your business needs public liability insurance if you’re in regular contact with members of the public. This type of cover will protect the business from the costs associated with compensation claims for injury or damage made by clients, customers or suppliers.
Examples of industries which Hiscox provide specialist cover to:
- Retail and shop
- Hospitality and catering businesses
- Business consultants
- Construction contractors and tradesmen
- Beauty industry and hairdressers
Why do you need employers’ liability insurance?
If your business employs staff, it’s likely that you are legally obliged to have some form of employers’ liability insurance. This will protect the business against compensation claims made by an employee, regarding injury, illness or damage as a result of their work.
Why do you need professional indemnity insurance?
If your business offers a professional service or advice to other businesses, indemnity insurance could be a sensible choice for you, or in the case of some professional bodies, legally required. This kind of cover will protect the business from legal costs and expenses incurred in your defence, if you were to make a professional mistake or alleged to have provided inadequate service.
Industries which are often required to have PI cover include:
Why do you need office insurance?
If you own the property that your business runs from, whether it be an office, a restaurant, a shop or even your home, office insurance is essential for covering any costs incurred by loss, damage or theft of the premises and its contents. If you work from home, you may want to check that your home insurance covers business property, as not all policies do. If you rent your business premises, it’s important to check with the landlord what is covered.