Amongst all the paperwork and struggles of setting up your new small business, what kind of insurance cover you require can be a source of great confusion. Every small business requires a different level and selection of covers and it is indeed true that some policies aren’t worth investing in, because the everyday work of some businesses won’t require you to ever claim on them. However, the basic fact is that you will need some level of insurance. In fact, for most employers it there are types of insurance that it is illegal to operate without..

The most obvious variable when you’re approaching the issue of insurance for small business is rather dully the matter of what kind of business you run. Take for example, Public Liability insurance. Is it really worth investing in? Well, if you business operates in public or routinely invites the public into its premises, the answer is an unequivocal ‘yes’. But what of businesses that don’t regularly deal with customers on the premises, or (like Builders) operate in public? An office based enterprise has little if any chance of causing harm to the public, so it rarely needs public liability insurance. Similarly useless to most small businesses, Builders and tradespeople would usually invest in Business van insurance. Remember, without your vehicles you don’t have a business.

The business’ size is also a very important variable in this question. If you’re a sole trader, Employers liability isn’t an issue. However, unless you’re operating a family business you are legally required to have Employer’s liabilty insurance. You only have to switch on to daytime TV to see how popular compensation claims are against companies due to workplace accidents. Whilst I don’t mean to promote distance between you and your employees, you can never really say that they will never sue you.

Last of all, you’ll probably want to insure your office buildings. If you’re simply trading from home your home contents insurance may cover you, but you should check with your provider. Your private office or commercial premises will require specialist Office insurance policies. These policies are often comprehensive enough to keep your business up and running in alternative premises should you be damaged by fire or flood. Some even have compensation plans for loss of business.