Is your business insurance fit-for-purpose?

Rather than waiting until that moment you need to make a claim, it’s worth digging out those policy documents and undertaking an assessment of your business insurance needs.

Insurance can seem complicated, and finding the right policy for your tech start-up can seem difficult with a traditional insurer. So we’ve worked with innovative business insurance company Superscript to make understanding your insurance needs quick and easy.Ask yourself three simple questions:

1. Does my insurance cover my business’s risks?

At first glance, the small print and jargon that make up your policy documents can be off-putting, but persevere – it’s simpler than it seems! Business insurance is just an umbrella term that comprises a number of different covers with slightly jargony names. Your policy will be made up of these different covers, so now’s the time to dissect your policy documents to see what you’ve got. Think about the following:

• First off, if you have employees (full time, part-time, temporary and even unpaid), employers’ liability insurance is a legal requirement. Not having it can result in a fine of up to £2,500 for each day you should have had it. 
• Check your public liability insurance. You will likely have this as it’s the most common element of cover taken out by UK businesses. Its purpose is to protect your business against legal and compensation costs caused by accidental injury or damage to a member of the public (by this definition, anyone who isn’t your employee) or their property. 
• Check for business contents cover. This is sometimes called business equipment cover. A basic way to think about what it covers is by imagining turning your office upside down. Everything that falls is likely to be considered contents (minus the people, of course!)
• Whether you own or rent your business premises, you may have office buildings. You can think about this in the same way as business contents cover, except it covers everything that doesn’t fall when the building is turned upside down (so bricks, mortar etc.). 
• Look out for professional indemnity insurance. This is an extremely popular element of cover. If your business enters into contracts with other businesses or clients, you’ll definitely want to consider this cover, as it offers protection for legal and compensation associated with your business’s contractual obligations. You may find that it’s actually a prerequisite for certain contracts and for those in certain professions. 
• Do you have cyber insurance? The word ‘cyber’ may well put many business owners off exploring its merits, but it’s an increasingly important cover for a large proportion of businesses. If you’re reliant on computer systems and/or hold client information, downtime or a data breach could be disastrous – especially without the right response capabilities. This is where cyber insurance really comes in useful.
• If you’re a sole trader you can ignore this one, but if you’re a limited company or partnership, you may have directors’ and officers’ insurance (also known as D&O insurance) which is designed to cover the personal liabilities of those in key management positions. If you’re seeking funding, it’s worth noting that VCs will often require it before investing.

2. Is my business insurance fit for today’s risks?

As a tech start-up it may be the case that a typical insurance policy won’t cover the risks your business may face, particularly if you operate in an industry that represents emerging or specialist risk. 

To understand if your current insurance has you covered is a two part question: 

Part one: does your business still look the same way it did when you first took out your business insurance? 

If things have changed (for example, you have more or fewer employees, or a higher or lower business turnover) and you’ve renewed without informing your insurance provider, you may well be over or under-insured. It’s always worth checking these details. With Superscript it’s as simple as logging into your online account where you can even adjust these details yourself. 

Part two: does your cover address newer threats?  

Newer threats, such as the threats of cyber extortion and cybercrime often aren’t covered by your standard business insurance policy (although with Superscript, cyber insurance can be bought as part of your business insurance package, or alone), which is why it’s worth checking to see what you’re covered for – if anything at all. 

3. Am I overpaying?

Whether you’re of the mindset that the peace of mind having cover brings is worth paying more than you need to, or you feel like insurance is one of those things you’d really rather not pay for, paying for cover you don’t actually need is never going to be worthwhile. 

One size doesn’t fit all, Superscript believes that all businesses deserve tailored cover and because change is inevitable, this cover should be flexible. The online quotation process takes the average person less than two minutes to run through and enables you to build cover to match your business needs. Cover through Superscript is monthly, so you’re able to adjust and adapt your cover as and when you need to (no admin fees!).

Please feel free to contact David Masih at OnTheGo Accountants on 0333 0067 123 for further details.