Following a dip in the number of people in the UK setting up their own businesses between 2008 and 2010 we are now starting to see an increase in the number of people taking it upon themselves to enter into the business world. If you are thinking about this as the path for you, there are many aspects which you’ll have to consider. As part of the initial planning process the first thing you’ll need to do is sit down and consider all of the costs that will be faced by your new venture in the first three years of trading. It is no surprise to learn that a new business will have a much better chance of survival if it is able to get through its first year, so planning all your costs appropriately is essential if this is to happen.
Beginning the process of starting your own business you’ll need to know and consider many different costs whether they relate to premises, payroll, taxes, rates and business insurance. In order to get the best and most appropriate business insurance quote from a broker you’ll have to provide them with detailed information on the business. The benefit of getting this done at an early stage is that you can factor this indication into your costs for your first year to see whether or not you are likely to stay afloat in that all important first year.
As an employer or small business owner, you have a legal obligation towards the public, your customers and your staff. Should one of these groups of people make a claim against your company, it is recommended that you have an existing policy in place to protect you from the financial repercussions of this. Towergate Insurance provides public liability insurance which is designed to cover any compensation awarded to the claimant, as well as any legal fees.
As a company that provides a service, it is often worth securing professional liability insurance. This will cover your business in the event that a client seeks compensation following, what they consider to be, erroneous advice.
Fully research the business insurance provider you feel will give you the best insurance to cover the needs of your company and speak to other small business owners about the specifics of their business insurance. Once you have this important first hurdle out of the way, you’ll be well on your way to getting trading.
Betty Friggott writes around the the topic of business insuranceand finance.