Having a startup business and being your own boss can be exciting and rewarding; the possibilities and opportunities are endless.
On the flip side, running a business comes with risks and responsibilities. With the right insurance, you can manage your risks and focus on what you do best – growing your business in the knowledge that you’re protected financially.
Searching for insurance can be overwhelming, not to mention stressful. There are thousands of policies on the market, offered by a plethora of insurers. That’s why we believe it is crucial to find the right insurance broker to help identify the best and most appropriate cover for your specific needs.
In this blog, we’ll be highlighting various covers and explaining some of the benefits of each.
What insurance do you need?
You won’t need every insurance product that we sell, but as your business grows and changes, so do your risks and insurance needs. Every business and startup is different.
Here are some common types of business insurance:
Employers’ Liability Insurance
This is a legal requirement for businesses with employees. The Employers’ Liability (Compulsory Insurance) Act 1969 ensures employers have at least a minimum level of insurance to cover their employees.
For example, it could be an employee suing for getting carpal tunnel syndrome or being injured due to faulty equipment. It could even be an ex-employee coming forward with a claim.
Public Liability Insurance
Public Liability is considered good business practice. Ultimately as a business owner, you are responsible for any damage or injuries caused by your business activities. Therefore, it makes sense to have an appropriate amount of cover for any claims that could arise.
For example, it could be a customer suing for an accident on your premises or damage to someone’s property from the work you’re carrying out. Accidents happen, and public liability insurance ensures that you won’t be left out of pocket if they do.
If you are a contractor or tradesman, some clients may ask to see your Liability cover.
Professional Indemnity Insurance (PI)
Not all businesses will need PI insurance. However, it is still one of the core insurance types for many businesses.
It may be required for some professionals such as accountants, architects, solicitors and financial advisers. Also, depending on what you do, some client contracts may refuse to do business with you unless you have sufficient PI cover.
It protects against claims made against you if you’re accused of negligence. For example, it could be incorrect advice or recommendations made by your company.
If you’re advising your clients, then we’d highly recommend considering it.
Product Liability Insurance
If you’re a manufacturer, wholesaler or retailer then we’d say this cover is essential. When selling products, things can go wrong, and when things go wrong substantial claims can arise.
For example, it could be a customer that incurs damages due to the faulty design of your product. The dangerous part is, you might not even know it is faulty before it is too late.
Ask yourself, if you were to be sued for a faulty product that you’ve sold, would you be able to afford the cost of defending your case?
We always advise having rights of recourse with any of your suppliers. This ensures that the provider accepts its legal liabilities and responsibilities in a contract.
As a reseller, one thing to be cautious about is when you’re relying on manufacturers overseas, due to the law being different their liabilities may not be accepted by them, leaving you to foot the bill of any claims.
Directors & Officers Insurance (D&O)
Your directors, partners, officers, and key managers are likely to have more responsibilities due to the nature of their role.
D&O Insurance covers the cost of any compensation claims made against your directors, officers, or high-ranking management for alleged wrongful acts.
Claims could be made by disgruntled employees, clients, investors, stakeholders, and even regulators and could involve civil, criminal, or regulatory proceedings.
Cyber Insurance
If you operate online or rely on computer systems to conduct business, then you should seriously consider this.
For many businesses, being offline is not a viable option. If your business handles sensitive customer data, then cyber insurance is particularly important.
Cyber insurance can help your business recover if you’re the victim of a cyber attack. It can help with financial losses, system recovery and appoint someone to deal with PR and crisis management to protect your reputation.
Imagine someone hacked your business – would you know what to do? Would you be able to afford the out of pocket expenses?
Property Insurance
If you rent the property that you run your business from then you won’t need buildings insurance. However, depending on what you have on-site you may want to consider contents insurance.
If you own the property, then you’ll likely benefit from the peace of mind that a comprehensive property insurance policy can offer. Protecting your premises and the contents in one policy.
Get your insurance working for you
At Jukes Insurance Brokers, we work with self-employed people and businesses alike to understand their risks and advise them on their insurance needs.
It will come as no surprise that we recommend you use a trusted broker, but choosing the right one is vital. We’d recommend the following:
- Ensure they are regulated by the FCA
- Check the reviews for your provider
- Make sure you know what you’re getting
- Ask them about their claims service
- Prioritise quality of cover
If you’re the business owner of a startup you could find yourself in the firing line. You’re legally responsible. Don’t be caught without the insurance you need to protect yourself and your business.
