Small Business Insurance

Most small business owners dread the whole issue of insurance and have a low opinion of insurance companies, many of which have developed a dreadful reputation over the years – and sometimes for good reason. However, small businesses cannot avoid insurance. It is generally advisable and often essential.

As a small business owner, your most important first step as far as insurance is concerned is to find a good insurance broker. A good broker will be able to advise you on what insurance you will need and then find the best deals. A good broker can also get to know your business and be invaluable to it. Try www.biba.org.uk for a recommendation.

It is compulsory that your small business liability insurance includes Employers’ Liability Insurance to cover your employees, if you have any, against any injuries they may suffer whilst doing their job. Even if their job doesn’t involve any hazards, insurance is still necessary. You still have to have it. If members of the public are likely to visit your premises then you also need a public liability policy which you can extend to cover defects in any products you sell. Both types of cover will usually be covered in good small business group insurance or traders’ policy. These policies can also include travel insurance for the small business.

If any of your employees drive as part of their job it is essential that you check that the insurance on their vehicle covers them for business purposes. Don’t take the word of an employee that their policy is OK, check it yourself. If they have an accident while working for you – even if it’s clearly their fault - you will have to pay the damages if they are not insured.

It is also a good idea to think about Keyman insurance. This is a policy which pays out if one of the key people in your firm is sick for a prolonged period. Small business health insurance can also be a good idea, allowing you, and perhaps your employees, to be treated privately at a time to suit your business.

Chris Hutchins of the Small Business Advice Network www.sban.co.uk