When it’s time to set up insurance for your business, it isn’t as straightforward as you might think. There isn’t a one-size-fits-all solution as there are several types of insurance to consider. Not all will be relevant to your type and size of business, but it’s essential that you understand how they differ and what they offer.
If you’re trying to find the right insurance set-up for your business, this guide will help you to understand the key facts.
Consult an Expert
You may want to consult with an expert insurance provider such as Hiscox so you can be sure you know the difference between public and employers liability, and whether you can combine a few types of insurance in one policy. By consulting an expert, you are secure in the knowledge that you are protected if something were to go wrong.
Find Out What Your Business Needs
Start by bringing together all the important information about your company. This will help you to identify what type of policy and level of cover you will need and are entitled to. For example, the number of employees you have, your annual turnover, if you’ve made insurance claims in the past and the nature of the work you do / service you provide.
Next, you need to research the different types of insurance which are available. It’s important to note that some are legally required such as employer’s liability (if you employ people) and commercial vehicle insurance (if you have company vehicles) while others are optional. You may also want to set up product liability, professional indemnity, public liability, or property insurance.
How Much Insurance Do You Need?
The type of business you run will impact how much insurance you will need. Your company contracts may specify this, but it’s also important that you choose a level of cover which will cover legal action costs should somebody take you to small claims court. Think about what errors could lead to a lawsuit and how much it could cost if it went to court, and take out public liability insurance which would cover at least that amount.
How to Set Up Business Insurance
There are several insurance companies and specialist brokers out there, and most (if not all) of them have an online quote and application process. You can choose one policy, multiple policies, or a package which combines several. The insurer’s website will ask you a series of questions to ascertain the type and level of insurance you’re likely to need. For example, they will want to know how many employees you have and if that number is likely to increase in the next 12 months.
They may ask if you want to insure your premises against flood, fire, vandalism, or theft or to insure your stock and equipment. Whether you own or rent the premises will also be important as well as the type of service you provide. If the public or clients are visiting your premises, you will need public liability insurance.
You’ll be asked when you want the policy to start and key information about the business such as when it started, your address and contact details. Once you’ve provided all the necessary information, you’ll be provided with a quote which you can accept, or you can try a few different providers to ensure you’re getting the best price and that they recommend the same types and level of insurance.
When you’ve bought your policy, your documents will be emailed or posted to you with a certificate which proves you have the insurance in place and when it will expire.