As a limited business, you should be aware of the must-haves your business should acquire before starting operations. Not only should you consider hiring an accountant to handle your finances, but you must invest in the right contractor insurance. Financially protecting it, it will give you the peace of mind that your company is safe in case of an unlikely event.
Insurance is also a requirement when working with certain businesses. Showcasing that you have carried out the right due-diligence, your employer will be more likely to trust what you have to offer.
So what insurance should your limited business invest in? We’ve created a list of the top three types of insurance that you should look out for:
Even though this type of insurance typically isn’t mandatory, it will protect your business against any compensation claims – that occur as a result of damage to property or personal injury.
Arguably an essential for limited businesses’ that come into contact with customers or clients, investing in it can save you thousands of dollars in the long run. There are several cases in particular when an incident could arise, that leads to a legal claim. This could be an accident within your business premises or within a client’s property among other locations.
These legal claims could require your business to pay out any medical fees, the cost of fixing any damage that’s been caused, legal expenses or the loss of earnings.
Another common form of business insurance that should be considered by limited businesses is professional indemnity insurance (also referred to as Pl insurance). This type of insurance is suitable for businesses that provide design work (i.e architecture), professional advice (i.e financial advice) or other types of services.
It is designed to insure your business against any neglect, error or omission claims made by employers. Covering the legal and liability fees associated with the process, it’s a must-have. For example, it can be beneficial in the following circumstances:
The requirement for employers’ liability insurance will depend on where your business is located. For example, across the pond, employers’ liability insurance is mandatory under the Employers’ Liability Act of 1969. In this country, it is required within most states – although it is worth checking if it is a must-have within the specific location you’re operating in.
With this type of insurance, employers are protected from any financial losses if a worker develops an illness or injury as the result of their role. A type of insurance which can come as part of a package (with workers’ compensation insurance), failure to invest in it could cost you a hefty fine down the line.
Those are just three key types of insurance that your limited business should consider investing in. Of course, this isn’t a complete list and there are other types that you should discover at the start – such as tax protection cover.
But by ensuring that you’ve fully researched into insurance, your business will be in the best position possible going forward.