Making sure you have the correct business insurance

As a new business, making sure you have the right insurance cover for any eventuality can be a minefield. Depending on what sort of business you run, where you run it from and whether you are an employer or not will make a huge difference to your premium. This guide will explain which insurance you will need - and which is required by law.

1. Compulsory insurance
2. Buildings and contents insurance
3. Public liability insurance

1) Compulsory insurance

Certain types of insurance are required by law, depending on the type of business you run. These include employers' liability insurance if you are an employer, motor insurance if you use a car or van for business, and professional indemnity insurance for businesses such as law or accountancy firms.

• Employers' liability insurance
• Motor insurance
• Professional indemnity insurance

2) Buildings and contents insurance

If you are running your business from home, your home contents insurance may suffice, but if you run it from separate premises, buildings and contents insurance will be essential. You may also want to consider taking out separate insurance for particularly valuable pieces of equipment, and business continuity or interruption insurance, which will help to get you back on your feet after a crisis.

• Buildings and contents cover - but home contents insurance may cover home-based businesses
• Consider equipment insurance
• Business continuity will help after a crisis

3)Other insurance

If you are a manufacturing firm, product liability insurance will be essential if something goes wrong. Similarly, public liability insurance will prevent you from being liable if someone injures themselves on your premises. You may also want to investigate health insurance for yourself: ask yourself whether the business will suffer if you are taken ill.

• Product liability insurance
• Public liability insurance
• Investigate health insurance

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