A Start-Up’s Guide To Business Insurance

A Start-Up’s Guide To Business Insurance

Business is booming in Yorkshire, with new businesses springing up all over the county in both the traditional sectors of manufacturing and tourism and new hi-tech industries. Exciting as starting a new business is, it’s also a time that’s fraught with difficulty and risk. To help you protect your fledging business this latest blog from Coversure Hull – East Yorkshire’s business insurance specialists – looks at the risks you need to insure yourself against and gives you some industry insider’s tips on saving money on high quality cover.

Business Insurance For Start Ups

Starting a business is a dream come true for many. It represents freedom, the chance to be your own boss and to pursue your passions. It’s an exhilarating – if nerve-racking! – time and the last thing you’ll want to think about is insurance. Business insurance matters though; from the ones that are legal necessities such as employers’ liability to the ones that can save you from ruin – such as cyber insurance and professional indemnity cover – having the right cover in place can save your start up dream from turning into a nightmare failure.

So, if you are planning to join the tens of thousands of entrepreneurs who’ve started new enterprises in Yorkshire over the past five years, here’s a quick guide to the cover you’ll need to keep the dream alive while your business thrives;

  • Cyber Insurance – 5 years ago cyber insurance was a little-known cover which was confined to large organisations – mainly ones in the technology sector. Oh, how things have changed… In the digital age in which we live and work, cyber insurance is increasingly being seen as a business-critical cover. According to figures from the Department of Media, Culture and Sport (DMCS) 46% of UK businesses fell afoul of cyber-attacks in 2016 – nearly double 2015’s figure – and the cost to small businesses averaged £1,570 per attack. And with the Office for National Statistics’ Cyber Security Breaches 2016 reporting only 30% of the U.K’s small businesses staff trained in cyber security, this is a massive issue for us all. Cyber crime is set to rise in 2018 and with the cyber criminals getting cleverer, any start-up with a computer needs to have cover in place.

  • Public Liability Insurance – if your business is going to have direct contact with the public – be that them coming into your office, your shop or simply out in public – then you need to consider public liability insurance cover. This will protect your business should a member of the public choose to sue you over injury they’ve incurred while on your premises – by tripping on a wet floor or a stray cable for example – or if their property is damaged. The costs of such claims can be ruinous – especially for cash-strapped start-ups – so getting affordable cover makes great financial sense.
  • Professional Indemnity Insurance – many new businesses in Yorkshire, particularly in hi-tech hotspots like Leeds and Hull, are consultancies who make their living by offering advice. Such businesses run the risk of legal action should the advice they give either prove to be wrong or ends up costing a client money. Web consultants, recruitment consultants, design consultants and even more traditional advice-giving firms such as solicitors and teachers are all vulnerable to being sued. In the event that you do face legal action, professional indemnity insurance will help cover the costs of defending the action and the costs of compensation should you lose.
  • Employers’ Liability Insurance – as your business grows so you will need to take on employees. If you do this then you will be legally required to take out employees’ liability insurance. This will protect you should one of your employees sue you as they have been injured at or through their work.
  • Business Insurance – of course if you want to keep it simple, then talk to your insurance broker about a business insurance policy. This a powerful policy that can be tailored to your start-up’s exact needs and can not only cover all the risks mentioned above, but other common ones such as those encountered by café owners, those working in high risk businesses and even landlords and other professional property owners.

How To Save Money On Your Business Insurance

Business insurance by its very nature is complex, and the cover that’s right for you may not be right for the business next door to you. Equally some policies require skilled advice and cannot be simply purchased online. This makes shopping around for good deals on cover far harder than it is for getting, say, car or home insurance. There are, however, ways you can save money and get a great policy and these include;

  • Always use a specialist insurance broker – they will have the knowledge of both insurance and business to ensure you get the protection your business needs. They will also be able to do the shopping around for you as they will have contacts with a number of different insurers and can negotiate better deals for you. If you like some independent business insurance advice then please feel free to call Coversure Hull on (01482) 434343 and we’ll be happy to discuss your needs.
  • Consider getting a bespoke business insurance policy – by combining several elements of cover in one policy, you can save time – something you’ll definitely be short of when you start your business – and money.
  • Pay annually – cash may be tight when you start, but by paying annually rather than monthly you’ll save money in the long-run.

Like Some More Help?

Well, we hope that’s given you some food for thought. If you would like to know more about protecting your new start-up or would like some help getting the business insurance that’s right for you, then please contact us. You can call us free on 0800 977 6037, email us by clicking here or get a no-obligation business insurance quote here.

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