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Start ups, what insurance do you really need?

Whether you’re starting out as a sole trader or a limited company, it’s vital you understand what cover you need to stay protected as you grow your business. 

Whether you’re starting out as a sole trader or a limited company, it’s vital you understand what cover you need to stay protected as you grow your business. 

First of all, should things go wrong, it’s important to understand the different risks facing sole traders and limited companies. Sole traders are personally liable and your property and assets can be at risk should things go badly wrong. For limited companies, should something go wrong you risk anything you have invested in the business. 

We’ll now explain some of the fundamental covers to have in place. 

Employers’ liability 

As soon as you employ somebody, you require Employers’ liability cover. This also includes apprentices or work experience people. Employers’ liability covers employers in instances of an illness or injury sustained by an employee caused by their work, due to employers’ negligence. An example would be an injury caused by faulty equipment. 

Public liability

Public liability covers you for instances of injury involving third parties or members of the public. It also includes property damage. An example would be if a laptop gets knocked off a client’s desk and breaks. 

Asset insurance

Businesses must insure their assets in the same way that you insure your home. These feed through to your balance sheet, which you clearly need to protect. 

Professional Indemnity 

If your business involves consultancy, advice, design or planning or any aspect of professional advice, Professional Indemnity insurance protects you in instances of allegations that you’ve made a mistake in the course of your business or given wrongful advice. 

Other considerations?

It’s important you consider what payment terms are available to you, clearly cash flow can be very challenging for startups. Many insurers offer interest free direct debit facilities rather than paying it all up front, so you can spread the cost over 12 months to help improve your cash flow. 

We love to help startups strike the right balance. We never suggest too much or too little cover, and understand the importance of starting with small amounts and increasing cover as your business grows. We create bespoke plans for each client, according to your specific business needs and cash flow requirements.

If you are a Start up and would like to discuss your requirements, Whinney Insurance Brokers would love to help. Please contact our office on 020 8659 5038 or email info@whinneyinsurance.co.uk.