As of 2024, 43% of Brits have a side hustle, and there are over 5 million small businesses that employ between 0-49 employees. This demonstrates a growing trend of individuals taking control of their income and pursuing their ambitions. While the amount of small businesses in the UK is promising, many self-employed workers may be unaware that business insurance is a must-have for their business to thrive in the future.
So, what is small business insurance? We’ll explore the best options for small business owners, detailing the cover you need to protect your operations and specific types of insurance suited to different businesses.
As mentioned, nearly half (43%) of Brits have a side hustle, with more than two-thirds (68%) of Gen-Z earning money from their side business efforts. With lower average incomes and access to tools like smartphones and online platforms such as TikTok, younger generations are embracing opportunities to generate extra income.
Small businesses are also flourishing, with over 5 million now operating in the UK, making up 99% of the business landscape. Between 2010 and 2019, over one million small businesses launched, growing to 5.45 million today.
The majority of these small businesses, just over 4 million, have no employees, and of those with employees, the bulk of these companies (1.2 million) have just one to nine employees. The most popular sectors for small businesses in the UK range across construction, wholesale and retail trade, professional, scientific and technical activities, and human health and social work amongst many others. Even with zero or a low number of employees, there are business insurance policies that are required to protect small firms. We can help provide the best insurance for small business owners, ensuring enterprises can continue to grow while having the cover they need.
There are various types of small business insurance, each offering specific protections. The best insurance enables you to operate without the risk of unexpected claims causing financial strain.
If you’re wondering, “What insurance do I need for a small business?” read on for our expert insights.
Employers’ liability insurance can cover claims made by employees who suffer injury or damage to their property while working. Although the majority of small businesses have no employees, this insurance is vital for those who reach the stage where they need to hire staff. Even if an employee is part-time, this insurance can protect the company in case this employee is hurt while on the job.
If employer negligence creates an unsafe environment, ranging from tripping hazards to faulty equipment, and this leads to hurting or damaging an employee or their property, the employee has a right to make a claim. Employers’ liability insurance is there to provide financial protection if a claim is made, preventing the business from falling under financial stress due to the potential costs of the case.
Product liability insurance is there to cover businesses if a product they either sell, manufacture or repair causes injury or damage. An important type of insurance for any small businesses that deal with products that are used by the public. Due to the potential amount of customers that could use a product from a small business, this insurance is vital in protecting smaller firms.
If a faulty product makes it through the manufacturing line, or a repair to a product has failed to rectify the issue, there is a chance someone using the product could get hurt. This product could be a tool, a kitchen appliance, a hairdryer, or even a cookie from a home baking business; the potential for something to go wrong when it comes to public-used products is massive. If a defective product causes injury or damage to someone’s property, product liability insurance can help to cover the costs if a claim is made.
Public liability insurance is designed to protect members of the public. This insurance covers claims from customers or visitors who sustain injury or damage due to business operations. For the many self-employed hustlers who don’t have a ‘proper’ workplace, you may ask yourself ‘Do I need insurance to run a business from home?’ The answer is yes! If you work from home, you may need to visit a client at some point, now in a public environment, or you or your equipment could end up injuring someone or damaging property, in this case, you would need public liability insurance.
Accidents happen, and this insurance is there to cover that. For example, if a customer falls due to a slippery floor in a hair & beauty business, they’re able to make a claim. Comprehensive beauty therapist business cover includes this essential public liability protection, securing your venture if a claim is made and preventing a major financial headache.
Professional indemnity insurance offers cover for businesses that provide professional advice or services, this could include design work or expertise. A client may incur financial losses due to the services provided by a small business – this insurance can protect the provider of the service if a claim is made by the client.
This type of insurance is vital for many types of small businesses, even those who work from home. Consultants, designers, architects, and many more types of businesses provide a professional service that requires the protection that professional indemnity insurance offers. If clients are following advice or expertise provided by a small business, they could claim if the advice results in a negative outcome. If you run a small business or side hustle or are thinking of starting one up, we can help create the perfect insurance package for you, so you don’t run into any unexpected financial headaches. Our team of experts are ready to help provide the best small business insurance, get in touch today.
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Marketing Manager
Rebecca leads the marketing team at Premierline in her role as Head of Group Marketing. Rebecca’s passion for marketing started over 20 years ago when she started a management programme for a major retail company and found her love for marketing, since then she has progressed in a variety of marketing roles across a number of industry sectors, including financial services and now insurance. As part of the management team at Premierline she has diverse knowledge and interests in all aspects of running a business from strategy, transformation, brand and communications, employee engagement and wellbeing to name just a few. Rebecca prides herself on having a customer-centric approach and her key marketing focus is to ensure Premierline always deliver a best in class customer experience.
It is important to make sure that you have the right insurance in place to protect the business that you have built. Every business is different and has its own business insurance needs, which is why we work with some of the UK’s most well-known insurers to ensure that you are getting the right insurance cover for your business.
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