November 10, 2024
Insurance

Useful Data on Your Company Insurance Needs Here –



The Global Investment Summit, held in October, highlighted that the UK has emerged as a leader in business start-ups, with 900,000 new ventures launched each year. All startups and SMEs require robust business insurance to protect them, however Google search data suggests a lot of confusion on the topic. One thing small business start-ups need is insurance, especially in a high risk sector like say building supplies, retail, healthcare, automotive service and repair, recycling etc. The risks are potentially huge.

With widespread online misinformation, the experts at money.co.uk business insurance have debunked common myths and offered tips to help SMEs choose the right coverage.

The most common business insurance questions:

Rank

Search term

Number of searches in the last year

1

What is public liability and what does it cover?

128,400

2

What is an umbrella policy and what does it cover?

99,400

3

Can you write off car insurance for business?

37,290

4

Do I need business insurance for my small business?

21,010

5

What is business interruption insurance and what does it cover?

20,690

6

Does business insurance cover loss of earnings?

15,110

7

Do I need workers comp insurance?

8,520

8

What insurance do I need as a sole trader?

7,320

9

What does commercial property insurance cover?

5,160

10

Are business insurance payouts taxable?

4,040

Myth: Umbrella insurance policies cover everything

Umbrella insurance provides extra coverage beyond your other policies, taking effect when you reach their limits. For example, if you have an injury lawsuit that surpasses your liability limit of £30,000 – the umbrella policy will cover the rest.

Myth: Business insurance isn’t required for small businesses

Business insurance is essential for any company, no matter the size. It covers you and your enterprise for any unexpected financial losses, such as legal claims, stock theft, or property damage.

If you have employees, you’re legally required to have employer’s liability insurance. This will cover any compensation claims if an employee injures themselves at work.

Myth: Business interruption insurance covers all types of unexpected events

Sometimes, unexpected events can prevent your business from operating, such as a fire, storm, or flood. Business interruption insurance can replace the income your business loses because of these incidents.

However, it’s important to note that the cost of repairs and replacements aren’t covered by this policy – you need building and contents insurance for this.

Cameron Jaques, money.co.uk business insurance expert, shares his tips on choosing the right level of coverage for your business:

“When buying business insurance, it’s important to think about what type and level of coverage you’ll need. This can vary depending on a number of factors, including:

  • The type of business: “Some businesses have a higher risk of things going wrong. For example, physical trades like carpenters and roofers face accident risks that could cause serious damage or injury. This makes them more likely to make a claim, meaning their business insurance policy will likely cost more.

  • Number of employees: “Sole traders have different business insurance needs than other companies. Any businesses with employees are legally required to have employer’s liability insurance. The more employees you have, the higher the chance of someone making a claim against you.

“Finding the right insurance for your business may take a lot of research, but it’s important that you get the right level of coverage. Make sure you use a reputable source when researching your coverage needs to avoid being misinformed by myths around business insurance.”





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