What are the different types of insurance (legal and optional) that my business is required to have before it can start trading, and what are the risks of not having it?
All businesses face risks and trade under many different legal requirements relating to insurance. These could be public liability, which ensures your customers and the general public are protected ,or commercial vehicle insurance, similar to your private car. Business insurance allows small firms to deal with unforeseen losses (damage to property or drop in profits if you have to close for a period) and minimises disruption in the event of a setback, getting you back up and running quickly.
Insurance also provides a level of protection for the firm in more serious incidents involving injury or even death. It’s wise to consider the risks applicable to your sector and business model and seek appropriate insurance. For example, an independent consulting business providing advice to large corporates will need a greater level of professional indemnity insurance than a local consumer facing retailer.
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Business insurance 101