Insurance

I had already familiarised myself briefly with some insurances needed when beginning your own business not realising that the insurances I had looked at were just the tip of the ice berg! However, it seems to me that the three main insurances are:

Professional Indemnity Insurance
Public Liability Insurance
Employers Liability Insurance

It is my understanding that Professional Indemnity Insurance is what covers you for any legal costs or expenses which may be the result of your defence in the event a design, advice or service being executed with the result of the client losing money. I found a really helpful website which tells you exactly what it is and gives an example of what a claim might be.

http://www.markeluk.com/useful-information/professional-indemnity-insurance-explained.aspx

Public Liability Insurance is a type of insurance which protects a business in the event a member of the public being injured or suffering a loss resulting in them making a claim for compensation. The below link offers more information on this type of insurance.

http://www.simplybusiness.co.uk/knowledge/articles/2008/04/2008-04-29-why-public-liability-insurance-is-essential–5/

I found it a lot easier to find information on Employers Liability Insurance than the other two that I have looked at and also a lot more legislation surrounding this. The Gov.UK website states that it is a must to have Employers Liability Insurance as soon as you become an employer. In the event an employee is injured or falls ill as the result of the work they have been carrying out in the work place this insurance will help to pay compensation towards them.

I couldn’t believe the severity of the fine for businesses if they don’t have the correct insurance which can be as much as £2500 per day! It was also shocking to find out that even if you don’t have your Employers Liability Insurance certificate displayed you can be fined up to £1000 per day!

https://www.gov.uk/employers-liability-insurance

http://www.hse.gov.uk/pubns/hse40.pdf

There are also a number of other insurances that need to be taken into consideration when starting your own practice or business such as:

Contents Cover
Goods in Transit Cover
Money (cash lost) Insurance
Business Interruption Insurance
Pollution Risk Insurance
Motor Vehicle Insurance
Directors and Officers Insurance
Trade Credit Insurance
Premises Insurance

All of these are certainly something to be considered in the event that should something go wrong with your business you will be covered and it won’t have as much detrimental impact as if you weren’t covered. Below is a link to a website which gives details of what insurances small businesses should have and how they will be protected.

http://www.forbes.com/sites/thesba/2012/01/19/13-types-of-insurance-a-small-business-owner-should-have/

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