Insurance Tips for Business Start Ups

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During the exciting and no doubt stressful time of setting up a new business, purchasing the proper insurance is often overlooked until the last minute.

Our Commercial Manager, Tim Davies, shares some of his top tips if you are just starting out:

  • Get onto insurance in good time. Cover may need to be tailored to suit your activities, and you may not be able to get an instant quote.
  • Don’t fall into to the trap of just going online and buying what you think you need. If unsure of what covers you should consider, use the services of an insurance broker who will provide impartial advice and guidance.
  • All businesses, however small, should carry Public Liability insurance at minimum. This covers you for claims for damage or injury to third-parties as a result of any negligence on your part. If you make something, you will also need Products Liability insurance.
  • If you employ anyone, whether paid or not, the law requires you to have Employers Liability insurance.
  • If you have a business premises, you will need to cover all the physical property that is yours – Contents, Computers, Machinery and Stock, not forgetting any improvements you have made to the building itself.
  • If you take gadgets and portable equipment away from your premises (e.g. phones, laptops, tablets) make sure these are covered by your business insurance policy.
  • If you could not use your premises following a claim (e.g. a fire), how would this affect your business? Your policy needs to provide Business Interruption cover to compensate you for loss of income and additional costs incurred in these scenarios.
  • Don’t just think about the obvious covers. The risks to businesses have changed, and policies such as Cyber Liability and Data insurance may be of more value to you than traditional covers.
  • Don’t try to match the cover to what you want to pay. Intentional under-insurance will not leave you in good stead if you needed to make a claim, and leaving out important covers to save money is unwise.
  • Once you are up and running, do all you can to minimise the chance of a claim occurring – check security at your premises, carry out and document risk assessments, and always be up-to-date on Health & Safety rules.

For independent advice and guidance on setting up insurance for your new business venture, call Tim on 01285 885885 or leave us a message using the form below.