A Small Business Guide to Business Insurance

Freelancers, contractors, startups and established businesses have all come to us at some point and asked the same question: what insurance do I need?
Here’s our handy guide to the most common insurance small businesses should be considering.

Where to start

So now you're on your own, what are the vital first steps in insuring yourself, that you need to consider? A great starting place is to consider how you work, where you work, and who you work with. You know you're great at what you do, and you'll bend over backwards to ensure the client is delighted, but what if things take a turn for the worse?

Professional indemnity insurance

That's where professional indemnity insurance steps in. It covers situations where clients aren't happy – perhaps they suggest your mistake has cost them further business, for example. Or they're simply not happy that the work you produced satisfies their brief. In such cases, indemnity insurance can handle the dispute, defending your reputation and covering any consequential losses, if they can be proved.

Public liability insurance

Once you step outside your front door, then it's highly desirable to have public liability insurance. This covers you against any incident which might befall a member of the public – such as tripping over your exhibition stand, for example. This policy will cover you, should they claim for damages or personal injury.

Office contents, buildings & property insurance

Then there's the business end of one type of insurance you should already be familiar with. Wherever you live, you probably have the building and contents insured. It's very wise to have similar protection for your work premises, and your business belongings too. Damage your laptop, and your business may be seriously interrupted: while a flood at your office could prove catastrophic. Best to be covered for the inconvenience, as well as the consequential loss to your income while everything gets sorted out.


So there you have it. Three simple ways to protect yourself as you start out in business. Getting the right cover need not be difficult or expensive, and in contrast the headaches you'll suffer should you “save” by not putting the protection in place could be massive, and very costly. There's plenty more to think about when it comes to protecting a business – employer's liability, once you start taking on staff: and key man policies, to protect the business, should one of the senior team fall seriously ill. But those can wait for the day when you've grown a little more.....



About PolicyBee

PolicyBee is an independent, professional insurance broker. We provide dedicated insurance services and products to consultancies, freelancers and contractors.
You can quote and buy online at www.policybee.co.uk or call 0845 872 5080 for helpful, friendly advice about your insurance.