New Business Insurance Checklist

Starting a new business can be an exciting time, but it can also be quite daunting. Working for yourself rather than anyone else comes with a lot of hard work, knowledge, and dedication to your end goal.

There are plenty of things to consider that every business needs to function and specific things that a business in your sector requires. You could be a shop, a manufacturer or a service provider, but whatever industry you’re operating in, there’s something you need to give you financial protection: insurance.

As there are many types of insurance available, it can sometimes be difficult to navigate everything to ensure you have the right cover at the right level to protect your business. Because the last thing you need your new business to suffer is a financial shock. So what insurance should you be looking at if you’re a new business?

Insurance Made Personal

Employers’ Liability Insurance

This is a compulsory insurance where you have employees. An employee, for insurance is anyone working for you, whether paid or not, under your direction and control. If you have chosen to form a limited company, and you will have two or more directors it becomes a legal requirement to have Employers Liability Cover in place.

If you are a sole trader then, family members are excluded from the requirements, though we would still recommend you have this cover in place in case the worst should happen.

Public Liability

An important cover that everyone should have though, is not compulsory by law (except for a few occupations such as riding schools). If you are working with other companies, this is the cover they will expect you to have and will often be compulsory under contract.

The cover provided is like Employers Liability, in that it covers your legal liability for Death, Disease, and Injury to members of the public and/or damage to third party property.

Motor Insurance

Just like with a private car, any company cars or commercial vehicles must be insured or declared SORN. Company Car insurance is often more expensive than private car insurance and you may find, at least at the start, that insuring privately and including business use is the way to go. However, if you have two or more vehicles owned in the business and/or directors names, in the long term a fleet insurance may be a better option.

Professional Indemnity

Again, rarely a legal requirement but it can be for certain professions. This cover protects the company against legal liability arising from negligent advice or service. Clearly this will apply to training and coaching companies as well as traditional professions, architects, accountants, solicitors etc. However more companies are seeing the benefit of this cover, including care, sports/dance schools.

Buildings and Contents Insurance

These covers relate to the physical loss and damage to your own property including buildings, contents, stock, tenants’ improvement (if you are renting premises and have updated the fixtures and fittings), electronic and computer equipment, and more. As the business grows you will invest in more assets and insurance cover for these is especially important to protect your investment. It is also advisable to get the proper advice on the rebuild cost of property, especially in the current climate where building costs continually increasing.

Business Interruption

Linked to Material Damage is the business interruption cover which, following a significant loss (from an insured peril), will pay an income to the business to replace the income it would have had, had the incident not occurred. This is a complex area and advice should be sought to ensure the calculation is correct.

Other Insurances

There are many other types of cover a business could look at, including Cyber Liability, Directors and Officers Liability, Goods in Transit, Money, Business Travel.

New Business Insurance with The Yorkshire Broker

If you’re a new business owner needing insurance but don’t know where to start, you can speak to an experienced insurance broker like The Yorkshire Broker, who can understand the specific requirements of your business as well as the risks and challenges you face to work out what cover you require and to what level.

By being able to recommend the specific types of cover and the breadth and depth of that insurance, it can ensure that there’s no wastage and that you’ll have adequate cover at the right levels across all areas of your business. So if you do have to make a claim, you can be protected.

When choosing an insurance broker, you should look for ones that have a proven track record in your industry, allowing them to impart their knowledge and expertise with the insurance available in that specific business sector.

New Business Insurance Checklist

Insurance Made Personal

Employers’ Liability Insurance

Public Liability

Motor Insurance

Professional Indemnity

Buildings and Contents Insurance

Business Interruption

Other Insurances

New Business Insurance with The Yorkshire Broker

Insurance Made Personal

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Industries

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