ImagesMagUK_January_2021

BUSINESS DEVELOPMENT www.images-magazine.com 16 images JANUARY 2021 What types of business insurance do I need? B usiness insurance is all about protection from potential financial loss. Whatever the size or maturity of your business, insurance can protect you against unexpected costs you otherwise may not be able to afford. Any business, no matter how small, should seriously consider taking out business insurance to protect them against both common and more complex risks. You’ll also find that, depending on your business situation, some insurance is a legal requirement. Where do I start? Insurance can be a daunting area, especially if this is your first time running a business. But it doesn’t need to be. Getting the right combination of covers to protect your business is simply down to identifying your risks and getting protection to mitigate the damage these risks could do to your business. Whether you’re working at home or in a factory, selling your products to business customers or via online retail, here are some of the most common types of insurance that may be relevant to you. Buildings, contents and stock insurance This will cover the physical equipment you use to run your business, from phones, cameras and laptops to machinery, garments and tools, as well as documents and cash. It will cover you for damage caused by: ■ Fire ■ Flooding ■ Malicious damage ■ Accidental damage ■ Theft If your business depends on equipment or machinery that would be costly to replace, you’ll want to consider this type of insurance. Public liability insurance This will cover you against claims of accidental injury to a member of the public (or anyone else who isn’t your employee, such as contractors or suppliers) or property damage to the space you’re working in. This isn’t a legal requirement, but you will find that some situations require it. For example, if you enter into a supplier contract, a minimum level of £5 million public liability is often required. And if you participate in craft fairs, markets or have a pop-up shop, for example, you’ll often find the organiser insists that you have public liability cover. Product liability insurance Similar to public liability insurance, this type of cover protects you against claims of accidental injury or damage due to your product. Whatever role your business plays in the product life cycle, it’s impossible to have complete control over what happens once it’s in the hands of a customer. If you make and sell garments using materials that some people may have an allergic reaction to, or that someone could choke on, for example, product liability is essential. Employers’ liability insurance This one is very black and white. If you have employees (including anyone on work experience under your control or supervision), employers’ liability insurance is a legal requirement. Not having it in place could result in a £2,500 fine for every day you don’t have it. Cyber insurance This insurance is for any business that’s dependent on using computers or holding data such as customer or supplier information. All computer systems are vulnerable to cyber attacks, and any personal data you hold is subject to the GDPR (General Data Protection Regulation), which imposes severe penalties (up to €20m or 4% of annual turnover – whichever is higher) for not complying with the regulation. Cyber insurance can be very comprehensive and often includes the help of forensics, PR and legal teams who understand how to deal with cyber crises should your b usiness experience one. T his all sounds very e xpensive... It really doesn’t need to be. Insurance is far more flexible these days than in the past. For example, as an insurance provider tailored specifically to SMEs, Superscript delivers insurance through a flexible, monthly subscription. Businesses can change or cancel their cover as they need to, as opposed to being tied into an expensive, annual contract. If 2020 has taught us all anything, it’s that things can change without a moment’s notice. Your business and insurance requirements can change very quickly and it’s for this reason you need insurance that is shaped around you and your requirements. Expert advice on the business of running a garment decoration company Q&A Ben Rose is the chief underwriting officer at Superscript – the business insurance provider specifically tailored to meet the fast-changing needs of small businesses. It shapes business protection around businesses’ individual needs, delivering bespoke, subscription-based insurance cover for all types of risk. www.gosuperscript.com