What is small business insurance?
Small business insurance is a suite of products aimed at business owners that includes:
- Public liability insurance (if a member of the public injures themselves, or makes a claim against your business)
- Employers liability insurance (if a member of staff injures themselves, or makes a claim)
- Product liability insurance (if you're a manufacturer and a customer makes a claim against a faulty product you've made)
- Professional indemnity (if it's been alleged that you've provided inadequate advice, services or designs to a customer)
These policies cover things like the legal expenses involved in defending a law-suit and any compensation that is awarded to the claimant.
Depending on your type of business and business needs, you'll probably be selecting different policies to sit under your small business insurance, as each business will have different needs and requirements.
As with larger businesses, physical damages, lawsuits and liability can all affect a small business, however, small businesses can continue to run if a claim is made against them, by making sure you have adequate cover in place.
Why do I need it & what could it cover?
There's a number of reasons you might want to consider it, whether you're a one-man-band like a mobile hair-dresser or beautician, or if you have a slightly bigger business with a few employees, like a guesthouse or a pub/restaurant. It's designed to cover you and your business against things like:
- If a mobile-hairdresser gives a client a chemical burn by accident, and the client takes out a lawsuit against the hairdresser (public liability insurance)
- A waiter who works at a restaurant slipping on a wet floor where there was no sign, and as a result breaking their wrist (employers liability insurance)
There are countless scenarios where you might want this cover, each being different depending on the business you're in, and each requiring a different level of cover.
Did you know? According to the Association of British Insurers (ABI) in 2012, insurers paid out an average of £7.0 million a day in liability claims of which, £2.7 million is employers' liability.
What do I need to get a quote
As well as details about yourself (your name, DOB and contact details) and your business (company/trading name and trading address) you will need:
- Details of your turnover and employee wageroll
- Details of any previous claims
- Your renewal documents from your current insurer (if you have one)
If you need help getting a quote, you can call our experts on 0800 107 4792 (Mon-Fri: 9am - 9pm | Sat: 9am - 5pm)
For more information take a look at our small business guides for useful information like: