Protect your business from the risks that could shut you down

The honest answer: From Day 1, if you're meeting clients, storing customer data, or selling products. The moment you interact with customers or handle their information, you're exposed to claims.

The legal answer: Some insurance is mandatory by law, Workers' Compensation the moment you hire someone, and minimum third-party motor insurance if you drive. Everything else is optional until your lease, client contract, or lender requires it.

The practical answer: Most founders and business owners get insurance when they land their first significant client or when someone asks for a Certificate of Currency. Don't wait that long; one incident before you're insured can put your business at risk.

Sort of. We can bundle multiple covers into a Business Pack, but different risks need different policies:

• Public Liability covers physical injury and property damage
• Professional Indemnity covers your advice and services
• Cyber covers data breaches and privacy violations
• Workers' Comp is separate and mandatory

Think of it like this: you wouldn't expect car insurance to also cover your health. Different risks need different policies. We make it easy by bundling them under one renewal date.

Public Liability: Someone trips in your office, you spill coffee on their laptop, or your product causes property damage. Physical stuff.

Professional Indemnity: Your advice costs a client money, your design doesn't work, and you miss a deadline, resulting in lost revenue. Professional mistakes and advice.

Most founders and business owners need both. Public Liability protects against accidents. Professional Indemnity protects against errors or mistakes in your work.

You still need:

• Cyber Protection if you store any customer data (names, emails, payment info)
• Professional Indemnity if you deliver services or advice remotely
• Personal Accident if you're a sole trader (you can't get Workers Comp)

You might not need:

• Public Liability (if truly no one ever visits)
• Business Contents (if you have under $5k-$10k in equipment, your home contents might cover it)

Even home-based founders and business owners face cyber risks and professional liability. Location doesn't eliminate those exposures.

No. Personal policies specifically exclude business use:

• Personal car insurance excludes business travel (client visits, deliveries)
• Home insurance excludes business equipment beyond $5k-$10k
• Personal travel insurance excludes business trips
• Personal liability doesn't cover professional services

If you claim on personal insurance for a business incident, the claim will be denied, and your policy may be cancelled. Always separate personal and business insurance.

Sole traders need more insurance, not less, because:

• You can't get Workers' Compensation for yourself (get Personal Accident instead)
• You have unlimited personal liability (no company structure protecting you)
• Your personal assets are at risk if sued (house, savings, car)
• You're more exposed because you're doing everything yourself

Minimum for most sole traders:

1. Professional Indemnity (if you give advice or services)
2. Public Liability (if you meet clients or go to worksites)
3. Cyber Protection (if you store customer data)
4. Personal Accident (replaces income if you're injured)

Incorporating as a company doesn't eliminate insurance needs, it just changes some liability structures.

Priority 1 (legally required):

• Workers' Compensation when you hire anyone (mandatory, non-negotiable)
• Minimum third-party motor if you drive (legally required)

Priority 2 (essential for operating):

• Public Liability if meeting clients or on worksites (many leases and clients require it)
• Professional Indemnity if contracts require it

Priority 3 (critical but can wait a few weeks):

• Cyber Protection
• Business Contents
• Personal Accident

Reality check: If you truly can't afford $1,000-$3,000/year for basic insurance, you might not be ready to operate yet. One claim will cost you 20-50x that amount. Start with the minimums, add more as revenue comes in.

Yes, you can cancel, but:

• Professional Indemnity is “claims made”—if you cancel, you're not covered for past work. Someone can sue you 2 years later for work you did, and you'll have no coverage
• You'll get a pro-rata refund for unused time (minus admin fees)
• You'll lose any no-claims discounts when you restart
• Many policies have minimum terms (can't cancel in first 6-12 months)

A better approach: If money's tight, consider increasing your excess (the amount you pay per claim) to lower your premiums. Or reduce coverage limits temporarily. Cancelling completely leaves you exposed to claims for work already done.

Market value: The insurer determines the value of your asset at the time of the claim. Your 3-year-old laptop might be valued at $500 even though replacement costs $2,000.

Agreed value: You and the insurer agree upfront what you'll be paid if there's a total loss. Locks in the payout amount.

When it matters:

• Vehicles (especially if financed—agreed value covers loan gap)
• Boats and caravans (values fluctuate unpredictably)
• Equipment and machinery (replacement costs often higher than market value)

For most business contents and stock, the replacement value is standard (it pays the cost to replace, not the depreciated value).

It depends on what you're doing:

You're probably fine with just home insurance if:

• You're doing pure desk work
• No clients ever visit
• You have under $5k-$10k in business equipment
• You're not storing customer data

You definitely need business insurance if:

• Clients visit your home office
• You store customer data (need Cyber)
• You deliver professional services (need Professional Indemnity)
• You have over $10k in business equipment

Most founders and business owners need a mix: keep personal items at home and add business policies to cover business risks. Your home insurer typically does not cover professional liability or cyber breaches.

You still need insurance if you're:

• Building software or products that will store customer data
• Giving advice to potential clients or investors
• Meeting with partners, advisors, or early customers
• Hiring anyone (Workers Comp mandatory)
• Signing contracts or NDAs

You can skip insurance if:

• You're truly solo, working on ideas, not engaging with anyone
• No one has access to anything you're building
• You're not incorporated yet

Reality: Most “stealth mode” founders and business owners are actually meeting investors, advisors, early customers, and building products that will store data. Get insurance when you start engaging with the outside world, not when you launch publicly.