Insurance for Small Businesses - UK

Whatever your business, make sure you get the best small business insurance...

By paying an amount for small business insurance every month, you will be able to protect your company from unpredictable threats which could prove to be very costly without sufficient cover. The cost of small business insurance depends on how likely the insurer believes it is that a claim will be made; and the probable size of such a claim, should it happen. Make sure you provide accurate accounts of the worth of your property. Over estimating the value of something may help you in the event of a claim, but it will also push up the cost of the premium.

There are several things to be aware of when taking out small business insurance. Always check the excess fees on your premium and don’t sign up for cover that requires you to pay a disproportionate amount of excess on claims, unless this is reducing the overall cost of the policy. Also make sure that you comply with all conditions for your small business insurance. For example, you may not be compensated in the event of a robbery if you do not have sufficient security measures in place.

Further points to consider:

No claims history – this can effect your premium so if it’s good make sure your small business insurance reflects it.

Making a claim – speed up the process by making a record of any relevant information you think might be useful should you need to make one.

You will find many companies don’t provide pre-set small business insurance policies, simply because there is such variety within this domain. The benefit of this is that you will only pay for cover that fully reflects the risks posed to your particular company. You can either get lots of separate insurance policies, or you can do the whole lot with a ‘package insurance policy’ which is much more convenient.

Below is a list of the most common small business insurance concerns. Even if you don’t think you need them all, it is worth checking as some are legally required.

1) Anyone outside your immediate family employed by your business needs to be covered by Employers liability insurance. This is a legal requirement and will protect you as the employer from any injury/illness liability issues that arise while they are working for you. Visit our Small Business Health Insurance page for an attractive alternative to employers liability insurance.

2) Any motor vehicles used for your small business require insurance, by law and for your own peace of mind.

3) Money Insurance is less common but it will cover you if money is lost or stolen from the business premises, your home, and during travel.

4) Public liability Insurance – protects you during business activities from any damage caused by or to a third party or their property.

5) In a similar way Products liability is a useful option for small business insurance as it protects you from any liability that arises from damage caused by products sold or supplied by your company.

6) For all your material assets, such as the property and all it’s contents you can get Material damage insurance which will cover you should any damage be caused to them.

7) Goods in transit insurance – covers your property and mode of transport from accidental loss or damage during transportation.

8) In the event that your business has to unexpectedly postpone trading you can be covered by a type of business interruption insurance. This means you will be reimbursed for any loss of earnings during such a period.

Always check how trustworthy your small business insurance company is before you sign anything. It may sound obvious but if an offer sounds too good to be true – it probably is.