As a small business owner, there are a number of types of insurance that you may want to consider in order to protect yourself and your business.  Business insurance can not only cover things like your company assets but also add a level of protection when it comes to potential legal action or compensation claims that may be taken out against you.  You will find that certain types of business insurance are obligatory while others will be a personal choice.

What types of insurance does your small business need?

There are some types of business insurance which are required by law and which may leave you facing fines if you don’t have them.

  • Business buildings insurance

If you own any commercial building such as offices, shops, warehouses or factories etc then you must have these buildings insured, in the same way that you need to insure your home. The most basic types of Business Buildings Insurance will cover your buildings against the risk of damage due to fire, flood or some other disaster.  For your own peace of mind, you may wish to take out a more comprehensive cover to include fixtures and fittings for example.

  • Business vehicle insurance

Again, as with any vehicle that you may use for personal use, those you use for business use will also need to be insured.

  • Employers liability insurance

Once you take on any employees then you will need to take out an insurance policy to cover your business against any sickness, injury or death that your employees suffer as a result of working for you. This insurance is required even if you don’t have full-time staff.

  • What other things can small business insurance cover?

There are a number of other types of business insurance which although not required by law, are a wise investment.  The range of policies available is vast so if you’re not sure where to start then here are some of the most common types of insurance that you can expect to come across and will want to consider for your business;

  • Public liability insurance

If your business has any interaction with members of the public then this insurance will protect you should they suffer any injury because of your business.  This insurance will also cover any damage caused by your business to another property.”

  • Professional indemnity insurance

If a client or customer suffers loss due to negligence on the part of your business, then this insurance will cover the cost of any claims and legal expenses.

  • Equipment insurance

It’s worth searching for specific types of insurance depending on what equipment you want to get covered.  For example, certain types of cover will be available for your electronic equipment such as laptops and PCs, while there will be other policies available for things like tools.

How to get small business insurance

As with any insurance, it’s worth shopping around.  The rates that you will find may well differ hugely but it’s worth remembering that the cheapest rate isn’t necessarily the best option.  Try to weigh up cost against the value you will get from the insurance itself and what is included in it.  There are a number of comparison tools available online so make use of these to ensure that you find the right policies for you and your business.

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