New Business Insurance Checklist

 

Starting a new business can be an exciting time, but it can also be quite daunting. Working for yourself rather than anyone else comes with a lot of hard work, knowledge, and dedication to your end goal.

 

There are plenty of things to consider that every business needs to function and specific things that a business in your sector requires. You could be a shop, a manufacturer or a service provider, but whatever industry you’re operating in, there’s something you need to give you financial protection: insurance.

As there are many types of insurance available, it can sometimes be difficult to navigate everything to ensure you have the right cover at the right level to protect your business. Because the last thing you need your new business to suffer is a financial shock. So what insurance should you be looking at if you’re a new business?

Insurance Made Personal

Employers’ Liability Insurance

 

This is a compulsory insurance where you have employees. An employee, for insurance is anyone working for you, whether paid or not, under your direction and control. If you have chosen to form a limited company, and you will have two or more directors it becomes a legal requirement to have Employers Liability Cover in place.

If you are a sole trader then, family members are excluded from the requirements, though we would still recommend you have this cover in place in case the worst should happen.

 

This is a compulsory insurance where you have employees. An employee, for insurance is anyone working for you, whether paid or not, under your direction and control. If you have chosen to form a limited company, and you will have two or more directors it becomes a legal requirement to have Employers Liability Cover in place.

If you are a sole trader then, family members are excluded from the requirements, though we would still recommend you have this cover in place in case the worst should happen.

Public Liability

 

An important cover that everyone should have though, is not compulsory by law (except for a few occupations such as riding schools). If you are working with other companies, this is the cover they will expect you to have and will often be compulsory under contract.

The cover provided is like Employers Liability, in that it covers your legal liability for Death, Disease, and Injury to members of the public and/or damage to third party property.

Motor Insurance

 

Just like with a private car, any company cars or commercial vehicles must be insured or declared SORN. Company Car insurance is often more expensive than private car insurance and you may find, at least at the start, that insuring privately and including business use is the way to go. However, if you have two or more vehicles owned in the business and/or directors names, in the long term a fleet insurance may be a better option.

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