Whether you’re setting up your own business or have been running one for a while, the subject of business insurance can raise questions. How do you know what is a legal requirement? Which extra covers are worth your hard-earned money, and which are a waste?
Is it the law?
Whether or not you are legally required to have insurance depends on the nature of your particular business, and any regulations you need to comply with in order to run your business.
In the UK, the law requires that you have employers’ liability insurance if you employ any staff at all, even if they are short-term, casual or contractors.
You may also find that regulators in your industry require you to have certain types of insurance in order to operate. For example, if you work in the motor trade, you’re required to have road risk insurance.
What else should I get?
Taking out other business insurance policies can be a sensible precaution, covering you against potential mistakes, accidents, theft, damage and the costs of fighting legal cases. Consider the things which could go wrong, and how your personal finances could be impacted if you weren’t insured.
Every industry comes with its own high-risk areas. If you run a one-man-band, you may want business interruption and personal health insurance in case you are unable to work due to injury or illness. If you have a premises that you run your business from, it’s not a legal requirement to have public liability insurance but it’s a good idea. If a member of the public gets injured or has their property damaged on your premises, this covers you against the costs of legal action against you.
The best way to know for sure what your business’s particular circumstances require is to talk to an insurance specialist, who can get to know your business inside out before recommending the cover you need, and cover you might want to have. Get in touch with Tradesure for a no-obligation discussion on your business needs, and make sure you’re covered where you need to be.
Want more? Read our insurance guides here.