Top 5 essential insurance products for small businesses

Don't know where to start? Read our handy guide to selecting the right insurance for you.

Employer's Liability Insurance

• By law, every business in the UK that employs anyone outside of immediate family must have employer's liability insurance cover
• In the event of an employee becoming ill because of work or suffering from an injury whilst at work, Employer's Liability Insurance overs you for the cost of any successful claim made against you or your business, as well as any costs incurred in the defence of the claim (for example legal fees)
• The minimum amount of cover required under UK law is £5 million but it's worthwhile taking out the highest level of cover you can afford as this can quickly disappear in
• If your employer does not have employer's liability insurance, they can be fined up to £2,500 per day that the cover is not in place

Public Liability Insurance

• Covers you for any damages that a member of the public may be awarded as a result of personal injury or damage to their property caused by your business. It also covers legal fees and other expenses to do with defending any claim
• The law states that if you injure someone or cause damage to property then you will have to pay a certain amount of 'damages' to compensate them which, in the worst case scenario, could run to many millions of pounds
• Businesses such as riding schools, instructors and any business working in somebody else's property would be well advised to get covered
• Some potential customers may refuse to deal with you unless you have adequate insurance cover

Office & Contents Insurance

Many standard Office Insurance policies will include both Employer's Liability and Public Liability insurance in their schemes but there are a number of other reasons that a small business might need more specific cover

Most Office Insurance policies also offer optional cover for:

• Office contents, including computers, photocopiers, phones, business machines and furniture
• Business interruption, whereby the costs incurred in the event of something happening are covered by the insurance company
• Loss of money to protect any cash that might have been held on the premises