Do I need business insurance?
Running a business can be risky, either physically or financially. It can be wise to cover yourself against these risks by taking out insurance for some things, such as accidents, damage, theft and liability, to name a few. The type of cover your business should go for depends on the type of business you run.
Having the correct business insurance in place can be reassuring for your customers or clients to see. It can help your business to look professional, which can be a bonus when it comes to winning over new clients. It also protects you from the the risks of running a business.
Working from home
Whether you need business insurance for your home business can depend on the activities you carry out. For example, if you're working out of your spare room as a therapist, or if you need to invite clients into your house in order to conduct meetings. Then you'll need to look at getting public liability insurance, just in case someone injures themselves while visiting your premises.
For more information on the different types of business insurance please check out our previous post Your Company and Business Insurance.
Online businesses can pose their own unique set of risks and problems compared to bricks-and-mortar types businesses.
Many online retailers opt to sell stock and physical items through online auction sites, as well as others that make their own ares to sell through their own online shop. This stock will need to be protected against risks such as fire, theft and damage.
You may also need to cover any business equipment that's needed in order to make the item you're selling. For example, if you make wooden trinkets and have specialist equipment in your workshop that gets stolen overnight, your insurance will be able to cover this. So it's worth looking into.
Many business insurance companies will ask you detailed questions in order to make sure nothing is left out when quoting for what you need. This means that you should be covered in all eventualities.
Stock insurance covers your stock, so if it becomes damaged or is stolen (plus some include cover for a few extra scenarios), you will be compensated with enough money to get it replaced based on the cost that's lost. Equipment insurance will cover the cost of replacing any equipment and tools that are necessary to your trade.
Staff & Services
If you haven't got any staff on your payroll then you generally won't need employers liability insurance. However, it may be worth you taking out professional liability insurance in order to cover you if there is an element of risk involved with the types of activities you are carrying out. It's likely you will be covered against physical and financial risks.
It is worth looking at different insurance providers in order to see which sectors they cover. Some companies will specialise in certain sectors, but others will be able to provide a tailored quote that can be built up by adding different elements to it. This can make it bespoke to your business.
The above information is for guidance only. Remember to always gain professional advice before agreeing to an insurance policy to ensure you are adequately covered. Insurance policies do change from time to time and between providers, so always check the policy to ensure everything you need is included.