A guide to insurance protection for your small business

With the view that it's better to be protected from the outset, assess the type of insurance you need, whether your business is delivering street food or graphic design. Insurance can help protect you in the event of comeback from clients and can help in the event of business interruption.

There are different categories of insurance with the main ones being:

Professional indemnity: Relevant to businesses offering services and knowledge. It can provide protection if you receive a claim alleging a negligent act, error or omission committed by you in the course of the conduct of your professional business.

Public liability: Advisable to have if clients are visiting your home office and/or you are supplying goods to consumers. This will protect you in the event of potential injury to business visitors and/or damages arising from the supply or sale of goods which have caused injury to a third party or their property.

Business interruption: This can cover your potential loss of revenue following a material damage loss.

Employer's liability: Only applies when you have employees. Offers protection in the event of death or injury to employees sustained in the course of their employment.

Motor insurance: This is different to standard car insurance, which does not include business use. If you have a vehicle dedicated for business, you should buy appropriate business vehicle insurance or get a business extension on your car insurance policy when using your existing car for business travel.

Home insurance: You are likely to already have a home insurance policy but this will generally not cover business activities carried out at home or business equipment within the home.

Speak to your insurance provider to upgrade to business policies. This is not usually costly but it will ensure you're protected.

This post is published in association with Legal & General.

For more tips on business protection and company set-up, download a free version of the Rough Guide to Work and Money.

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