What kind of insurance do you need to start a business?

What kind of insurance do you need to start a business?

A good insurance policy is tailored to the needs of the business. In this article we will run through the key covers available. To discuss your individual requirements with a startup insurance expert Click Here.

Public Liability

If you have any one visiting your office or property then you need this cover. This cover will protect you for the cost of a claim made by a member of the public if they suffer injury or damage to themselves or their property as a result of your business. This can be anything from slips and trips to even people tripping over your equipment away from your premises, from a car being damaged in your car park to a visitors laptop falling off your desk and breaking.

Employers’ Liability Insurance

As soon as you take on your first employee you are required to take out employers’ liability insurance. This cover protects you against compensation claims arising from illness or injury to an employee arising from the work they do for you. It is important to note that even if you use temps, seasonal workers or volunteers you must purchase this cover.

Buildings Insurance 

This insurance is essential if you own your property and this will cover the structure, fixtures and fittings as standard.

Management Liability

Insurance that covers financial exposures faced by directors, offices, managers and business entities that arise from governance, finance, benefits and management activities This is an essential piece of cover to ensure your personal assets aren’t exposed should someone take legal action against an individual which frequently happens in today’s litigious society.

Employee Travel Insurance

A specialist business travel policy should include cover for business equipment, business samples, medical expenses and loss and cancellation expenses.

Intellectual Property

For many businesses their image, their brand, their uniqueness is their value. Therefore it’s imperative to protect copyrights, trademarks, patents, design work, art, software coding and so on. Intellectual property insurance covers the pursuit of intellectual property infringement claims. It also covers the defence costs should you infringe on someone’s intellectual property which can be easily done as a company grows and a company has more employees.

Product Liability Cover

Product liability insurance covers you against injury or damage caused by your product. Essential cover for anyone making or selling products.

Pollution and contamination

Since 2000 the Environment Agency has brought over 20,000 prosecutions and set direct fines totalling £40m. Standard cover in a package or commercial combined isn’t sufficient for many companies and if you have a business that could pollute i.e. petrol station, car wash, oil distributor, chemical transportation and so on so you will need a specialist policy. If you do have this cover then you will be liable for clean up costs and any remediation work that is required.

Business Interruption

Business Interruption insurance protects against business income losses resulting from the interruption or interference as a result of an insured peril.

The main benefit of Business Interruption is that it helps to limit the effect that reduced levels of income can have on a business following a loss. This cover will pay for the loss of income and continuing costs at a time when turnover is reduced.

Plant and Business Equipment Cover

This covers your plant and equipment. It can also cover your legal liability under terms of the hiring agreement to pay for loss or damage caused to hired-in plant and the cost of continuing hire charges.

Goods in Transit Insurance

This covers goods against loss or damage while in your vehicle or when sent by a third-party carrier. This should include theft, loss and accidental damage. Although you may hiring a company to transport your goods their insurance is a set amount by volume and this doesn’t change whether they’re transporting smart phones or tennis balls. Therefore, you may need your own cover to ensure you aren’t out-of-pocket.

Money Insurance

It covers money in tills, safes, in transit, in an ATM and so on. It can vary quite a lot from package to package so it’s important to get a policy with the right limits and that you comply with the conditions of the policy.

Fidelity Insurance

This pays for losses you incur as a result of loss of money or goods arising from dishonest or fraudulent acts of your employees.

About Edison Ives

We are an innovative brokerage that loves working with startups. What you will get from us is a great service and we can help with business advice if required. We utilise the latest technologies whilst keeping our overheads low. Why? Well, we want to provide you with the most competitive price possible for the right cover.

We are also proud members of Bluefin Network, who support and represent a collection of like minded independent insurance brokerages across the UK. By collaborating with the Network, we have the buying power to give our customers great products at  great prices.

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