Business insurance needs to be taken into consideration when you set up your company in the UK. You will also need to think about the type of cover you require.
Employers’ liability cover is a legal requirement for most businesses with staff, public liability insurance is important if you are in contact with members of the public and professional indemnity insurance is useful if your business offers advice.
What type of insurance does your business need?
The work that you do and the risks you need covered all need to be taken into consideration. Could your business face a compensation claim from a disgruntled client because they believe you have been negligent? Do you have buildings, contents, business equipment or stock to insure?
Here are a list of the most popular types of business insurance:
- Employers’ liability insurance
- Public liability insurance
- Professional indemnity insurance
- Business buildings insurance
- Business contents insurance
- Stock insurance
- Product liability insurance
- Personal accident insurance
- Business interruption insurance
- Business legal protection insurance
Is business insurance mandatory in the UK?
The only type of business insurance that is mandatory under UK law is employers’ liability insurance. This is a legal requirement for most businesses that employ staff even on a casual basis. Solicitors, accountants and some healthcare professionals are required to have professional indemnity insurance.
What cover is needed for a small business?
Small businesses can require the same level of cover as a large business however this all depends on the setup of your business. If you are a one-man band then you won’t need employers’ liability insurance but you may still want others aspects of your business covered.
Can I get insurance before registering my business?
Yes you can get business insurance before registering your business and even before you have started trading. When you buy your business insurance you won’t usually be asked for your company registration number or any other business registration details.