Whether you’re a high flying business owner or a budding entrepreneur starting out with a great idea, sooner or later you’re going to find yourself wandering aimlessly in the minefield of business insurance. Dangerous stuff!
No superhuman IQ is required, but you’d be fooled into thinking a simple phone call will leave you ‘feeling epic’ like Action Man. This five-step guide will help business owners make a more informed decision and save cash.
1) Meet your legal requirements
You MUST meet your legal requirements. The only business insurance mandatory under UK law is employer’s liability insurance. This is required by all businesses that employ staff, whatever their contracts.
However, if your business operates vehicles, it’s mandatory by UK law that you have third-party insurance vehicle insurance to cover claims made against you from third parties. Some industry regulators may also require you have insurance cover in place. For example, solicitors and accountants are required to have professional indemnity insurance. To discover the legal requirements of your business please refer to Gov.uk for information or talk to your local council.
2: Understand your risks
Next, you should assess the risks within your business. These are unique to each company. It’s best to make a list here. Always look at risks that are ‘reasonable’ and could happen. Here are some example scenarios.
If you run a logistics company, it’s reasonable that one of your vehicles could be involved in a road accident. This could injure a member of the public, your staff, or damage the goods being transported. This could help inform your insurance needs.
By Callum Watkins
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