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Important Things to Consider When Insuring Your Business


Running a new business or a start-up is difficult enough without the often stressful and complicated process of ensuring your new company is covered should things go wrong. Getting adequate insurance is an important aspect of running a business that cannot be ignored and, given its importance, it has to be done right in order for your business to enjoy the benefits of proper cover. There is nothing easy about starting a business as there are many risks involved, and this is even truer if you are doing it alone. In this instance, having the right backup may ultimately be the difference between having to shut your doors for good and breathing new life into your company after a difficult period.


Whether you run a home based business or you are an established and growing one, there are important things to consider when insuring your business, some of which include the following:


Get the Details Right

When it comes to insurance cover and claims, the devil as they say, is in the detail! The most important aspect when getting cover for your company is to get the details right; from an accurate description of what your business actually does to factors such as your location, the age of your premises, and any existing security measures. Accurate details help your underwriter to work out adequate insurance cover, while the business description will always be closely examined in the event of a claim, so it is critical to get your details right.


Types of Insurance Available

Whether you are self employed and running your business from your front room, or you are a bigger business that employs several people, there are some basic types of insurance your business will need to have in place. The most common include cover for everything from buildings and machinery, to contractor insurance or cover for your regular staff, and it is important to have these in place just in case.


  • Building and Contents Insurance: This will help to cover tools, furnishings, and any other equipment that your company uses, as well as cover for the premises you are running your business from.
  • Public Liability Insurance:  This is one type of insurance that some companies may not think applies to them, but it is important cover if your business activities come into contact with members of the public in any way.
  • Professional Indemnity Insurance: Some companies will not work with businesses that do not have professional indemnity insurance. This cover ensures that the clients you work with are protected from any unforeseen circumstances, making it quite useful cover to have.
  • Contractor and Employers Liability Insurance: This type of cover applies to both sole traders and companies employing several people as well as those that regularly use contractors in their day-to-day operations. If you work for yourself, would the business survive if you had to take some time off? Likewise, employers are legally required to carry employer’s liability insurance to cover their workers.


If you are thinking of creating a company or you are the owner of a newly established business, insurance should be one of the first things on your to-do list. Once your cover is in place you can get on with enjoying the benefits of consolidating and growing your business while having the assurance of a safety net should your company face anything that’s unplanned for.


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