Insurance for New Ventures and Start-Up Companies
We support Start-Up Britain!
The UK’s Government is encouraging us all to take up the challenge and become entrepeneurs and start up new business ventures.
It hopes by encouraging people who may have been made redundant, have just left university or indeed just want a new challenge and direction to start-up a new business. It is hoped that such growth in the private sector will take up the challenges of a much reduced public sector, by reducing unemployment, increasing gross domestic product, increasing the UK’s balance of trade, thereby reduce the nation’s deficit.
If you establish a new business whether as a sole trader, a partnership or a limited company, arranging the appropriate insurances tends to be towards the top of your ‘to do’ list.
Certain commercial insurances are required by statute law and so mandatory such as Employers’ Liability and Road Traffic Act cover for vehicles.
However, some insurances are generally a pre-requisite of doing business with customers such as Public and Products Liability and for some firms Professional Indemnity. Customers will expect any firm they deal with to hold the basic insurances in the event of any any product causing injury or damage and in the case of Professional Indemnity, if any incorrect professional advice causing financial loss.
You’ll probably wish to hold other insurances to protect the firm’s assets and revenues for example, whereas others you’ll feel you ought to hold in order to protect your own personal position such as with Directors & Officers Liability and Management Liability.
Experience suggests the purchase of insurance for new start-up firms is very much split between ‘must have’ insurances, ‘should have’ insurances, and ‘nice to have’ insurances and a good insurance broker can guide you through the decision making and buying process, as your new business grows and funds available for insurance permit.
Independent advice at the right time
At the early stages of a new business the owner/principal/director needs to be able to talk to a professional in the knowledge that they will not try and ‘sell’ something they don’t need (at that stage at least!)
Fundamental to this is the need to fully understand your business from the start, your initial set-up is important, but also your plans for the future so we may consider future changes and growth in our recommendations. Starting small is good but any insurance programme needs flexibility to grow and develop and many changes may be required, even in the first few months. There are insurance companies that offer policies direct but remember they can usually only offer one type of product and can’t offer advice – only a broker is independent and can provide such advice.
Rowlands & Hames wish to retain you as a client for many years and it is in our best interest to provide the right level of cover, for the right premium, at the right time, throughout the development of your business.
Premiums for the basic covers start from as low as £100 for a basic Public Liability insurance.
To assist with a new enterprise’s cashflow, payment by 10 or 12 instalments is available, occasionally even interest free.
Rowlands & Hames, who are Chartered Insurance Brokers, would be delighted to help. Please have a browse of our website gather more information about some of the products we offer. Many are specialist insurances – remember initially it may only be the basics you require. Don’t be embarrased if your business is only small or asking any question, remember every firm was once a start-up!
Please contact us to discuss your own small business – we’ll be happy to help you in whatever business sector you’re involved with.