bizSimple

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Monday 6 September

“A good job well done will lead to more”

Insurance

No matter how small your business, it will need some form of insurance. There are various types to be considered, some are legal requirements; others are optional.

Insurance can be expensive, but it is all about risk. Other than the insurances that you must have, it is up to you to choose any others, based on the level of risk, likelihood of occurrence and consequences of loss if things did go wrong.

FAQs

What insurances must I have?

You must have business use cover for your car and, of course any commercial vehicles. You must also have Third Party Public Liability insurance. If you intend employing anyone at all it is a legal requirement that you also have Employers Liability cover and you must display your certificate in your business premises.

You might also have to have specific cover depending on the service you are selling. If you, or your employees are working off any sort of ladder or raised area you must tell your insurers as many policies do not cover working at height.

How do I get a quote for insurance?

An insurance broker will be able to advise on which are the most appropriate policies to obtain for your particular business. They will shop around to find the best policies and quotations for each one. It is important that you check you are getting the cover you need.

Can I offset insurance against my business?

The premiums you pay for business insurance cover are treated as a business expense, as demonstrated in the bizSimple Toolkit. It is best to have adequate cover, which may be more expensive, but it could save you greater expense or even the loss of your business should you need to claim.

If you have a company car, provided by your business, then the company will pay the insurance for this vehicle; however, if you are using your own car you might only be able to claim the additional cost of the business use cover – check with the Inland Revenue, or your accountant before claiming money for car insurance.

What other insurances should I consider?

Professional Indemnity Insurance is required for some professions to insure against loss caused by bad advice or professional negligence. It can be requested by your clients.

Building and Contents – if you own your premises you will need to have cover for rebuilding. If you are renting, or leasing this should be covered by your landlord; however you will need contents insurance for your own items, which could include stock, money, goods in transit, computers, etc.

Other insurances could include:

Business Interruption
Combined Insurance
Key Person Insurance
Credit Insurance
Fidelity Insurance

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