After you have incorporated your new limited company it is important to put certain types of insurance in place.

There are some insurance policies that you are required to put in place by law following your company formation. Any business employing one or more people, including the Directors and the Company Secretary, has to have Employers Liability insurance in place. If any of the employees of the business are injured at work the company may be held responsible and this type of insurance should provide protection for the company. Similarly Public Liability insurance protects the business if a member of the general public or third party is injured whilst working with or otherwise interacting with the business.  It is possible to get both types of insurance in a ‘combined’ insurance policy.  This type of cobined policy is used by many small businesses.

There are also other types of insurance that you may wish to have from early on in the company’s life following the company formation.  People working in a professional capacity and offering advice such as lawyers, accountants or architects may want Professional Indemnity insurance. This protects the company if it suffers any claims for professional neglect, omissions or error by anyone working for the company.

Companies in a more product based sector may want to put in place Product Liability insurance to protect the company if a product causes injury or damage.  You could face legal action if your goods or services are not “fit for purpose”.  This is particularly important when selling products made to be used by children or in the food industry.

Some businesses may want to acquire other types of insurance after your incorporation, such as buildings and contents insurance.   You may also need cash in transit insurance if you are likely to be handling a significant amount of cash, or health insurance if you wish to provide this to your employees.

To form your company with Wisteria Formations, click here: http://www.wisteriaformations.co.uk

Wisteria is not an insurance company, broker or underwriter.  Wisteria is not regulated under the FSA.  The above is general information and you are advised to seek insurance advice from an FSA regulated insurance specialist.