How to decide what insurance you need

The first step is to assess the type and range of cover your business requires

Every business is different so there’s no ‘one-size-fits-all’ approach to buying insurance. Each business has individual risks and you’ll need to assess these risks before deciding which policies to buy. Some purchase decisions are straightforward, while others require further investigation and advice. You will require employer’s liability if you have staff or are a limited company so ensure your package has those. Business motor insurance for your vehicle is also a necessity and you must ensure that all your staff have cover too.

Public liability insurance, though not a legal requirement, is a very sensible policy for most businesses as if you injure someone or damage property in the course of your work then you are open to a claim. ‘No win, no fee’ legal services now make a brisk trade so consider covering yourself for legal costs should someone make a claim against you. In an increasingly litigious society insurance is the only sensible option. Business interruption insurance is also worth considering as there are so many reasons why your business will be unable to trade. A burglary can cause a great deal of problems particularly if you have a lot of stock which is why many policies cover contents. You need to really assess in as much detail as possible where your risks really lie. Independent advice is advisable for many firms. This advice could come from an insurance broker or a business adviser and to some extent other entrepreneurs. Finally you must read each policy carefully and look at the exceptions and obligations that you must fulfil surrounding making a claim. Many companies get into trouble because they didn’t read or understand their policies – so don’t get caught out!



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