So, you've taken the plunge and started your own business? Congratulations! Whether you're launching a tech start-up, a building company, a consultancy or a hospitality business, there's a lot to think about, and business insurance should definitely be on your list.
It may not be particularly glamorous, but it’s absolutely crucial!
But where do you start? With so many types of cover out there, it can feel like you’re drowning in jargon, but don’t worry - we’ve got your back! Let’s break down the essential types of business insurance every start-up should consider.
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Public Liability Insurance – because accidents happen
If your business involves dealing with the public, even occasionally, public liability insurance is a must-have. Whether you run a café, a marketing agency with client meetings or a pop-up shop, this cover protects you if someone claims they’ve been injured or their property damaged because of your business activities. Imagine a client tripping over a cable in your office and hurting themselves? Public liability insurance ensures that a little mishap doesn’t turn into a financial nightmare.
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Professional Indemnity Insurance – protecting your expertise
Are you offering advice or professional services? Consultants, designers, financial advisors and marketers… this one’s for you. Professional indemnity insurance covers legal costs and compensation if a client claims your advice or services caused them financial loss. Even if you’ve done everything right, mistakes (or misunderstandings) happen, and this cover ensures your business doesn’t take a massive financial hit because of it.
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Directors & Officers (D&O) Insurance – covering the decision-makers
If your start-up has directors or key decision-makers, you’ll want to consider D&O insurance. This one protects individuals (not just the company) from personal financial losses if they’re accused of mismanagement, regulatory breaches or negligence. In simple terms, if something goes wrong and you’re held personally liable, this policy will protect you.
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Cyber Insurance – because hackers love small businesses
Think cyber-attacks only happen to big corporations? Think again. Start-ups are prime targets because they often don’t have robust security systems in place. Cyber insurance covers the financial fallout from data breaches, hacking and other cyber threats, helping with things like forensic investigations, legal fees and customer notifications. If you store customer data or rely on digital platforms, this is one policy you shouldn't ignore.
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Business Interruption Insurance – keeping the lights on
What happens if an unexpected event (like a flood, fire or even a cyber-attack) temporarily shuts down your business? Business interruption insurance helps cover lost income and operating expenses during the downtime. It’s especially useful for businesses that rely on physical locations or online operations that could be disrupted by technical failures. As a business, you decide on the length of your indemnity period when you take out your policy.
Getting the right business insurance isn’t just about ticking a box, it’s about protecting the business you’re working so hard to build. Start by assessing your risks, understanding your industry requirements and speaking with a professional to tailor a policy that fits your needs.
If you need expert guidance, Ascend Broking Group is here to help. Let’s make sure your start-up is covered so you can focus on what really matters - growing your business! Contact us today on 01245 449060 or email matthew.collins@ascendbroking.co.uk.
