We all know that running a small business is risky, and involves a great deal of precious time, money and effort for a huge number of entrepreneurs across the world. And yet it’s these small businesses that are the bedrock of different economies: creating jobs, providing essential services and generating wealth to a variety of different enterprises. 

And for many of these small businesses, the margins between success and failure are terrifyingly small. The slightest mistake or incident could throw the trajectory of the company off course – and that’s why protecting a small business with different types of insurance is vital.

But there are so many different types of insurance available, and it’s tough to know which is best for your small business. Here, we guide you through your small business insurance options:

Employers’ Liability Insurance

A legal requirement for any business with workers, employers’ liability insurance protects you and your staff in case they are ever hurt as a result of the work they do. By law, it must provide you with a cover of at least £5 million, although the majority of businesses choose at least £10 million. Without an insurance plan such as this in place, you could be fined up to £2,500 for each day that you aren’t covered.

Commercial car insurance

If your small business uses cars, vans or automobiles in any way, then it will need some form of commercial car insurance. By law, you’ll need at least third party coverage – although most discerning businesses will choose a fully comprehensive plan to protect themselves against any potentially costly mishaps. 

Public liability insurance

The vast majority of small businesses perform their duties in the public sphere, which is where a wide number of accidents, and claims, occur. And as the cost of compensation claims from injured members of the public can often be crippling, public liability insurance is a must. Only by paying into a trusted public liability insurance policy can you enjoy the peace of mind, safe in the knowledge that a mistake won’t spell the end for your business. Clients also love a company with public liability insurance, as it makes a business seem much more responsible and a safe way to invest their money.

Professional indemnity insurance

Does your small business offer advice to clients? If so, professional indemnity insurance protects against your staff making mistakes – and ensures that you’re covered if money was lost on account of any erroneous advice. 

Key man insurance

Many small businesses depend on a few vital employees to keep the business ticking over, and if they were suddenly taken ill or worse, then would the company be able to survive? Key man insurance means that you can survive with compensation in the unlikely event of key members of staff being unavailable for work.

Author – at Publicliability.org.uk you can choose from a huge number of transparent, trusted public liability insurance policies for businesses of all shapes and sizes.