Setting up a new firm is an exhilarating experience and can be extremely satisfying when it works. However, forming a new company also involves taking on a large amount of risk and responsibility, and those who employ people are arguably in a particularly precarious position as far as the ‘duty of care’ goes. Legal risks mean a big solicitor’s bill is always a possibility, so a small business insurance package could be a straightforward way of providing peace of mind.
There are several different types of cover which are used by firms to help guard against eventualities which would otherwise see them in financial difficulty. Forms of insurance most people will have heard of include public liability, employers’ liability, and tool and equipment insurance.
Some firms will not need protection for tools, while others may feel employer’s liability is not necessary. Many insurance firms will mix and match policies and tailor cover levels to suit your business. For those who need a wide range of protection due to the nature of their work, small business insurance is available as a package covering just about any circumstance you could think of, for a set fee.
Public liability insurance protects a company if an act of negligence on its part results in a member of the public being killed or injured, or ending up with damaged property. It applies if a member of the public mounts a legal challenge following the injury or damage. The cover will pick up the cost of defending this claim, whether or not it is valid or indeed successful. It will even pay any awards of compensation or costs, again up to limits.
Employers’ liability is the type of cover essential for anyone who employs someone. It will protect them if they face a claim from a worker who is killed or injured during their work due to an act of negligence on the part of the employer. It will also protect a business if it faces a claim from an employee whose property is damaged because of their work, or who becomes ill because of their job.
Tools and related equipment insurance protects against the loss or damage of important tools used in the general operations of the business. Professional indemnity will protect a firm if it is sued by a client following a mistake, omission, or act of negligence which results in a financial injury.
Protection is also available for things like business interruption, if you lose money because your business has ground to a halt due to unforeseen circumstances, plus stock insurance and personal accident cover. Small business insurance is therefore an essential umbrella to some of the common pitfalls of running a firm, and can often be bundled into a straightforward package for a reasonable premium.