When first starting out in business it can be a bit of a whirlwind time for many first-time entrepreneurs, especially if they're unaware of the cover they might require to adequately protect their new-born business.
Let's take a look at two types of cover that should definitely be considered when starting out - employers liability and public liability insurance.
Employers' Liability Insurance
Did you know that if you employ any members of staff for your business you are legally required to have an adequate employers' liability insurance policy? There are some exceptions - such as those who employ solely family members, however, even these firms would be well advised to make sure they have some form of liability cover in place. If you're unsure then simply call up an insurance firm and ask.
Employers' liability insurance will cover your business in the event that an employee or ex-employee is injured, becomes sick or even incurs personal property damage as a result of your business operations whilst working for you.
Employers' liability is a vital policy as it will not only cover damages claimed by employees but also covers any legal fees incurred by your business whilst defending the claim, up to a limit agreed with your insurer.
Without an employers' liability insurance policy in place you could be subjected to substantial fines, along with the costs of having to repay any legal fees and damages incurred by the employee or ex-member of staff... this could run up to thousands of pounds and is not something many first-time business owners can afford.
Public Liability Insurance
Unlike employers' liability, public liability insurance is not a legal requirement, however, if your business comes into contact with members of the public - whether clients, visitors or suppliers, it could be a vital asset.
Public liability essentially works in the same way as employers' liability, however, it covers you should a member of the public, such as a customer, get injured, fall ill or incur property damage as a result of your business operations.
Public liability insurance can cover the cost of damages claimed as well as the cost of your legal fees, up to a limit agreed with your insurance firm.
Whilst public liability is not a legal requirement it is a policy that the vast majority of businesses take out. Not only will this liability cover help protect your business financially it will also give anyone you work with peace of mind that you are covered should anything happen.
Did you know that there are many firms, public organisations and even individuals who will not work with you if you do not have public liability cover in place? So if it means the difference between high-profile contracted work and being turned away on the grounds you're not covered - is that really a risk you would want to take?
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