By Dom Walbanke on Small Business UK - Advice and Ideas for UK Small Businesses and SMEs
As a new jewellery business, it’s great that you are already thinking about what small business insurance you need. There are a number of covers that may be useful, but to keep things simple you can opt to get them all included in a single business insurance policy.
Types of insurance cover worth considering include:
Tool insurance
Business equipment or tools insurance covers the things that help you run your business such as your laptop, mobile phone, equipment, or tools for making your jewellery. Keep evidence of the things you’ve insured (like receipts or photos) as this can help if you need to make a claim.
Also consider insuring the materials you use to make the jewellery, and any finished items you keep as stock. You should insure the maximum amount of stock you will have at any one time. If you’re using precious metals or gems, bear in mind that it may be more difficult to find an insurer to cover you.
Postal insurance
As an online business, postal insurance could also be useful, as it offers protection against items going missing or getting damaged in the post.
Because each item you will be selling will be more expensive than typical packages, you can take out extra cover. With the Post Office, for example, there’s the option for additional cover up to £2,500 and optional consequential loss cover up to £10,000.
Public liability insurance
You should also consider public liability insurance, which covers you if your business causes injury to another person (not including an employee). This is particularly important if you have clients, suppliers or deliveries arriving at your home address for business purposes.
Public liability insurance: why you need it – Not sure if you need public liability insurance for your business? Here’s why you may need it and what event insurance is available
Product liability insurance
Product liability insurance is to cover you for damage to someone’s personal belongings. This is still relevant for a business run from home, as it can cover compensation claims for injury or damage caused by the things that you’ve sold.
Employers’ liability insurance
Also remember that if your jewellery business has employees, you are required by law to take out employers’ liability insurance – or you could risk being fined up to £2,500 a day.
Employers’ liability insurance – what is it and do you need it? – Here, we answer all of your questions around employers’ liability insurance – how much will you pay and what happens if you don’t have it?
As a home-based business you should also tell your home insurance provider about your business and what you’re doing, as it may affect your home insurance policy.
But like everything insurance related, it is worth speaking to a broker about your business specifics so you can be sure that you are covered for all eventualities. You can find a broker via the British Insurers’ Brokers Association (BIBA).
More on insurance
Business insurance: Everything you need to know – Insurance offers vital protection from the crippling costs of a claim against your business. But which insurance do you actually need and which is merely optional?
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Dom Walbanke, Khareem Sudlow
