What insurance would my business need?

For a fictitious business...

Using the Business Link website's interactive quiz:

Where is your business based?
You answered: England		Change
Does your business have any employees?
You answered: No		Change
Are there any people in your business who are essential to its proper function?
You answered: Yes		Change
Where does your business operate from?
You answered: Rented premises		Change
Does your business premises have any signs or large glass windows?
You answered: No		Change
Does your business premises have any machinery, stock, or other contents on site?
You answered: Yes		Change
Does your business operate any vehicles?
You answered: Yes		Change
How do you use vehicles in your business?
You answered: Only use private vehicles for business		Change
Is your business involved in transporting goods or products?
You answered: No		Change
Do you regularly carry cash to or from your business?
You answered: No		Change
Would your business suffer if any of your commercial debtors were unable to pay you?
You answered: Yes		Change
Does your business rely on the smooth running of machinery or computers?
You answered: Yes		Change
Do members of the public come to your place of business?
You answered: Yes		Change
Does the public engage in potentially hazardous activities at your place of work?
You answered: No		Change
Do you make or supply products for sale?
You answered: No		Change
Does your business engage in activities where there is a high risk of pollution?
You answered: No		Change
Do you provide professional advice to your customers?
You answered: Yes		Change
Does your business have directors or officers?
You answered: No		Change
Would you like to discuss this topic with a Business Link adviser?
You answered: No

It was decided that, these are the insurances required:

Certain types of insurance cover are mandatory and your business must be covered by law. Other types are recommended and should be seriously considered to help prevent your business suffering materially.

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Motor vehicle insurance - Mandatory

You must ensure your policy covers business use. If you are not sure, contact your insurance provider to check.

For more information, see our guide on how to insure your business and assets - general insurances.

Key person insurance - Recommended

Protects your business against the loss of income resulting from the disability or death of a person in a key position.

For more information, see our guide on how to insure your business - people, life and health.

Premises insurance (rented property) - Recommended

If your business is in rented premises, check with the building owner that their insurance covers any risks arising from your business activities.

For more information, see our guide on how to insure your business and assets - general insurances.

Contents cover - Recommended

Stock - should be insured for its cost price without any addition for profit. Provision can be made for seasonal stock fluctuations.

Plant and business equipment - can be insured on either:

• replacement as new
• indemnity basis - wear and tear is taken into account when settling any claims

For more information, see our guide on how to insure your business and assets - general insurances.

Trade credit insurance - Recommended

Trade credit insurance covers businesses against the risk of bad debt due to the insolvency or default of their buyers.

This cover can be an important tool in credit management and can also provide a replacement of working capital when bad debts and late payment impact on cash flow.

Engineering insurance - Recommended

Engineering insurance provides cover against electrical or mechanical breakdown for most machinery, including computers.

Business interruption insurance - Recommended

Insuring you against disruptions to your business that lead to loss of income and extra expenses, business interruption insurance compensates you for the shortfall in gross profit and pays any increased working costs and fees incurred.

Public liability insurance - Recommended

Public liability insurance covers your legal liability to pay damages to members of the public for death, bodily injury or damage to their property which occurs as a result of your business activities.

It also covers legal fees, costs and expenses such as representation at any coroners inquest, fatal accident enquiry or other court hearing because of an accident.

For more information, see our guide on liability insurance.

Professional indemnity insurance - Mandatory/Recommended

Protects professional businesses against their legal liability towards third parties for injury, loss, or damage, arising from their professional negligence or that of their employees.

Certain professions must have professional indemnity insurance as a regulatory requirement or as a result of their professional authorisation, including architects, accountants, solicitors, surveyors, insurance brokers and financial advisers.

For more information, see our guide on liability insurance.