What insurances do I need to consider for my small business?

It is vital that you take out the correct insurances prior to starting work to cover you against any potential risks associated with carrying out your work.

Professional indemnity insurance (PII)

This will provide negligence protection against your company’s liability to compensate clients who have suffered loss or damage due to the professional error of one of its employees. Any person providing a professional service cannot afford to be without PII cover. In addition to paying damages, it covers the cost of the legal fees for defending a case. If you are a member of a professional institute or association we recommend that you ask them to suggest a broker specialising in policies designed for your profession. Otherwise you can find details of PII cover on our website.

Public/Employer’s liability insurance

Public liability insurance will provide protection against claims for legal liability for accidents to members of the public and/or damage to their property. By law all small businesses, including interim managers and consultants, need employer’s liability insurance to cover employees, whether full or part time, against injury whilst at work. In accordance with legal requirements, the employer’s liability insurance certificate must be displayed in a prominent place at work - even if the consultant works from home.

Household insurance

Independent professionals working from home need to confirm their household insurance status. Working from home is an increased risk for insurers but most policies now include this as standard. However, a simple telephone call to check on your own policy is a wise precaution.

Contents insurance

If computers and other office equipment are destroyed or stolen, it could be expensive to replace them and fees could be lost as a result of not having the necessary equipment available. Portable equipment should also be covered, but may not be covered if left on the back seat of a car, unless the policy includes a locked vehicle warranty.