When you are in the middle of a photo shoot, composing a new tune or perfecting your latest fashion range, insurance might be one of the last things on your mind. But with thousands of businesses each year running into problems because they don’t have adequate cover, it is well worth giving it some serious thought.
Whether you are a musician, a designer or a make-up artist, if you are running your own business you should make sure you are covered if something bad occurs.
There are a lot of different products on offer but these are a few of the main ones which could help give you and your business peace of mind and fulfil your obligations to your customers and staff:
Public liability insurance provides cover if a customer or member of the public suffers a loss or injury as a result of the work you do and makes a claim against you. For example, if you are a photographer and you accidentally knock someone over while on shoot, this covers compensation payments plus any legal expenses. Public liability insurance also ensures you are covered if you cause damage to someone’s property while working.
With the average PL claim costing over £10,000, having to foot the bill could severely impact your business.
Professional indemnity insurance provides cover if you fail to produce work to a professional standard and subsequently have to defend claims made against you. It even helps in the event that you are sued unfairly by a customer who was generally dissatisfied, but had no valid claim. This might occur if, for example, you work in fashion and a design you create for a supplier isn’t to the standard they were expecting.
Even the most professional person can face this type of claim so it’s important to have the right cover in place.
As your business grows, you may need to take on extra staff. When you do, you should consider employers’ liability insurance. Whether they are full time, part time or just friends who do the occasional day here and there, they are still working for you and as an employer it is your responsibility to make sure you are adequately covered.
It is a legal requirement to have at least £5 million employers’ liability insurance if anyone works for you but most insurers offer £10 million as standard. By taking this out, you can make sure you are covered against claims made by employees who suffer an injury or a work-related illness.
Many UK insurers offer products tailored for small businesses and in some cases they provide packages which include several types of cover. The most important thing is to do plenty of research before you buy. With luck you will never need to make a claim but if you are properly insured you can put all your energy into making your business a success, safe in the knowledge you are covered should the worst happen.
Janet Connor, Managing Director, MORE TH>N
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