As an SME, you’ll no doubt have employees, and will have assets. You’ll be exposed to more risks than if you were an employee, and so it is a necessity to have the appropriate business insurance.
The types of insurance that you will have in place range from compulsory to beneficial, and will depend on what type of business you run.
Not allowing for industry specific insurance cover, you would expect to be familiar with the following;
Employers Liability Insurance;
Outside of the loss of a valued employee, the financial loss to an SME from accidents at work can be staggering. According to the HSE the economic cost of workplace injury and illness in 2015/16 was £14.9billion.
- As an employer, you have a duty of care to your employees, making this particular insurance a compulsory requirement. If your employee is injured as a result of a work related accident, your insurance will cover the monetary cost to your business.
- A minimum cover is required, and an Insurance specialist would be able to advise you.
Public Liability Insurance;
- Advantageous if you are a customer facing business such as hospitality. Any industry where the public enter your ‘premises’ poses a risk to your customers, and yourself, so get protected.
Product Liability Insurance;
- You sell products rather than services e.g. electrical hardware/ tools and someone has an accident that is viewed as caused by your product, this insurance would cover you if your products caused harm to an individual.
Professional Indemnity Insurance;
- For those businesses that provide a service rather than a product, solicitors, accountants etc this type of insurance will cover you against claims that your advice has caused a financial loss to your client
Building and Contents Insurance;
- If you own your business premises, you should consider both buildings and contents insurance- consider the financial loss if you had to close your business for a period of time- it’s not worth taking the risk.
- If you lease, you’ll only need contents- but do check your landlord has the appropriate building insurance in place, don’t be afraid to ask for the necessary insurance certificates.
- Be wary of working from home, similarly to a car that you declare for being used for leisure driving only, your home may not be covered for working from home.
Often not considered an essential, but one that The Avanti group (UK) Ltd would definitely recommend, Tax Investigation Insurance.
- Take a moment to consider the cost of your Accountant completing an HMRC Investigation. You can get cover from as little as £110.00 per annum for a Sole Trader (correct as of Feb 2018), a small price to pay if HMRC tie you up in an Investigation. All Avanti Tax Accountants clients are automatically offered Tax Investigation Insurance.
we are not insurance experts and this is general advice. As part of Avanti Networking we are able to recommend Insurance Brokers to give you advice on your specific circumstances.