Small businesses form the backbone of the British economy. The majority of them are small, with two-thirds of them owned and run by just one person. An estimated 90% of all businesses employ fewer than 6 people.
But small businesses also operate in a highly competitive environment, where even the slightest error or mistake may prove costly. Risks and perils abound, many might threaten the very existence of your business. That is why you are likely to put the protection of small business insurance high on your list of priorities.
This type of business insurance is extremely versatile and flexible, offering practically any enterprise the opportunity to protect itself against a whole range of potential liabilities, the legal costs of defending those allegations of liability when things do go wrong, and to safeguard some of the most common assets of any business.
Why choose us for your small business cover?
- When it comes to small businesses, we are the specialists, servicing more than 33,000 such policies every year
- Our expertise and experience allows us to offer an especially high level of service – which some 95% of our customers describe as “good” or “excellent”
- We have been established for more than 25 years
- Our contact centre is based in the UK
- If you small business employs anyone else, you may welcome the fact that our employers’ liability insurance includes cover of £10 million as standard
How much small business cover am I likely to need?
They may make up a huge proportion of all British enterprises, but small businesses in this country are remarkably diverse and varied – both in the scale and the nature of their operations.
It means that business insurance, too, needs to equally varied and diverse, capable of offering essential protection to all manner of enterprises. Here, then, are some of the areas of concern likely to be expressed by the typical small business.
Liabilities, liabilities everywhere … to the public
For anyone starting out with a new business, the range and potential seriousness of liabilities may be quite frightening.
In the first instance, you and your business have a general liability towards just about everyone – your customers, your suppliers, those who visit your business premises, those you go to meet in their own homes or otherwise offsite, neighbours and members of the public at large.
Your business has what is known in legal circles as a duty of care – a duty also sometimes described as being guided by the principle of the “good neighbour”. Just as any good neighbour, you owe it to everyone to avoid actions which might result in their being injured or their property being damaged. If you breach this duty of care, you may be held negligent and liable to pay the injured party or parties compensation.
Claims arising from your alleged negligence may reach very substantial amounts and it is usual for the public liability insurance which offers you indemnity in such circumstances, to cover a minimum of £1 million.
… and to your employees
If you have any employees, you have a similar but quite separate duty of care towards their safety and well-being at work. You may be held liable if an employee suffers an injury or contracts an illness or other medical condition because of the nature of their work for you.
Again, you may be ordered to pay a substantial sum in compensation. In this case, however, the law also steps in to make sure that you have the finances to meet any such claim. This is achieved by your legal obligation to hold a minimum of £5 million employers’ liability insurance. If you don’t, you face being fined up to £2,500 for every day that the cover is not in place.
Some businesses carry even further liabilities
If you are in the business of providing advice, planning, technical drawings, or other professional services, you have a particular duty of care to ensure that the standard of your work meets the standards generally required of anyone in your profession.
If you make a mistake or error in delivering professional advice which results in your client suffering a financial loss – or worse – you may be sued for a breach of your professional duty of care.
In order to practice at all some professions may insist that you have a prescribed level of professional liability insurance. Even where there is no such requirement, your clients might look to the reassurance it typically gives and the professional status you may claim as a result.
Funding legal challenges and action
From time to time, your business may need to consult a solicitor for advice or to pursue some legal action.
Legal fees and costs do not come cheap and legal expenses cover may be a valuable source of protection for your small business.
Commercial Vehicle insurance
There are very few businesses which do not rely to some extent on their own form or forms of transport.
Appropriate, business use motor insurance, therefore, may need to be part of your small business insurance.
Protecting your small business is easy with constructaquote.com. We offer tailor made, affordable insurance options to make sure that all areas of your business are covered. Why not contact us today to see how we can help?