With more and more people deciding to start their own business, it is vital that they are insured. It is a legal requirement after all, and landing a fine for having no insurance for your business or even the wrong type of insurance would be a really bad way to start off your business. That’s why we’ve compiled this guide to help you know the ins and outs of business insurance.
Do I really need it?
Just like many other insurances, business insurance is a must for businesses. However, you may need different types depending on what type of business you own. This leads us on too…
What types do I need?
It really depends on what type of business you run. If your business deals with clients and other third parties, you would most likely need public liability insurance.
If your business offers advice or deals with intellectual property, you would need professional indemnity insurance. It covers you if you make a mistake in a clients work that could cause them damage in their reputation or financial status. Finally, if you have employees, you need to have employers liability insurance, which is pretty much self-explanatory.
How much will it cost?
It can range from as little as £40 to as much as £800, however bear in mind we are talking about moderately small businesses. The profession you work in has a major impact on how much your insurance will cost. For example, the average cost for a builder is £270, but for a carpenter it is £120. This is because a builder uses lots of high-risk machinery, and therefore the company considers them as a client that has a higher chance of applying for a claim. Also, builders tend to make more money than carpenters, so their average will go up.
Is commercial insurance the same thing as business insurance?
Many people believe that these two terms mean different things, but in reality they both mean the same. To protect a business from any risks.
Can I get insurance before registering my business?
Most companies won’t ask you for any details to do with your company registration when you are applying for insurance.
Can you get insurance without a trade license?
The same as above also applies here, you don’t require a trade license when applying for insurance. However if you start trading without it and then make a claim your claim may be dismissed and your insurance voided as you will have broken the company’s terms of service.
This is our definitive guide to business insurance. Remember to check out our other blogs to find out more amazing tips to save your time and money when finding insurance. Thanks for reading.