Why business Insurance?I’m a freelancer.

Insurance all boils down to risk. Disaster may or may not strike your business, but if it did, there would be financial implications. With insurance, you’re transferring the responsibility of paying

those finances to the insurer.

Disaster?

Yep. It could be a multitude of events. Theft of your equipment, for example, or a client dispute

which has ended up in court.

How do I know what cover I need?

There are three key business covers

• Professional indemnity

• Public liability

• Employers’ liability

Professional indemnity

Think of this as covering any errors or omissions. Unintentional copyright infringement, breach of

confidentiality, loss of client data, giving ill-informed advice. Professional indemnity will have

your back if you make negligible mistakes and have unhappy clients to contend with. It’s

important for anyone working with clients.

Public liability

Public liability protects you against cases of injury or damage to a person or property. Whether you need public liability insurance will boil down to how often you come into contact with clients or

members of the public.

Employers’ liability

This is a legal requirement for any business that has one or more employees. It covers any

employee injuries sustained at work, or illnesses developed as a result of working for your business.

If you employ people but don’t have employers’ liability insurance, you could face a £2,500 fine for

each day you go without!

Can you give me genuine examples of when my business would need this cover?

Professional indemnity

A client has asked you to build an eCommerce site accepting payments. A bug in the code, however,

has meant that no orders have been able to be taken for a 72 hour period. The client is unhappy, and makes a claim against you for loss of income within that 72 hour window, as well as damages

done to their business reputation.

Public liability

You spill your morning coffee over a client’s laptop during a meeting, leaving you liable for the cost of

the repair. Alternatively, a client is visiting your home office but trips over a stray cable in your

office, injuring themselves in the process.

Employers’ liability

Employers’ liability is similar to public liability, but covers employees instead of clients or members of the public. Your employee slips on a wet floor in

the office, resulting in damage done to their knee and time off work to recover. They seek

compensation, which you—the employer—is liable to pay, as well as covering any legal fees.

There are other optional covers too

• Business equipment (laptops, tools, etc)

• Business buildings (your office)

• Product liability (physical products you sell)

How much is it going to cost?

That’s tough to answer—every business is different and it depends on what cover you

choose. Some people might just need professional indemnity and their contents covered. Others

might want something more comprehensive. It’s likely not as expensive as you think, however, and could cost as little as a few hundred pounds a year.

It’s also a tax-deductible expense.

Any more questions?

We want to help!

http://insurancebyjack.co.uk

@insurancebyjack