3 Steps to a Perfectly Protected Small Business

Small business insurance: 'cause you never know when the company dog or tractor will attack.

Here’s more…

If you run your own small business, you’ll no doubt have numerous tasks and priorities to juggle on a day-to-day basis.

Keeping your investment running smoothly can be a challenge but it’s also hugely rewarding.

With the everyday operational aspects of the business to tend to, it could be easy to let insurance considerations slip your mind.

If you’re just starting out with your own business, it’s good to get your insurance cover sorted early. By putting an adequate policy in place from the offset – you can feel sure that you, your employees and your work have sufficient financial protection.

Here are 3 things to think about:

Protecting the Public

If your business activities mean that you come into contact with clients or the general public – you may want to consider public liability insurance. This type of cover could be vital if your work injured someone or caused damage to their property. For example, if you were working at height and accidently dropped something on someone’s car (or on their head!) they may seek compensation.

If people visit your business premises, you might also feel that this type of cover is a necessity. Something as small as an unmarked spillage or a loose cable could result in a large injury claim against you.

Protecting Your Employees

As soon as you take on a member of staff, employers’ liability insurance normally becomes a legal requirement. The cover is designed to protect you financially if an employee (or former employee) makes a claim against your business.

An employee may claim for compensation if they are injured at work or become ill as a result of working for your business. This insurance could help you meet any legal costs involved and compensation pay-outs awarded.

Protecting Your Skills and Services

If you offer your professional skills and knowledge to clients, you could be at risk of a negligence claim. Unfortunately, mistakes can happen and clients might not always feel satisfied by the work you’ve done or the advice you’ve given. Although you probably feel very confident in your abilities, it’s often wise to prepare for the unexpected.

For example, if you gave a flawed piece of consultancy advice that subsequently lost your client money – they may take legal action against you. Even if the claim is spurious, the legal costs involved in defending your business could be very damaging.

If you find yourself facing a negligence claim – professional indemnity insurance could come in very handy indeed. Even a missed critical deadline could result in a costly claim which, without the right protection, could be crippling for a small business.

Written by Emma Jowett, resident writer at insurance hub Policy Expert.

Photo by redjar