What insurance does your business actually need?
At the start, the key is understanding what risks exist in your business and whether they need to be covered.
Scenario 1 — if you work with clients
You need public liability.
This applies if:
- clients visit you
- you visit client sites
- you operate in shared spaces
Without it, any injury or property damage claim sits with your business.
Scenario 2 — if you provide services or advice
You need professional indemnity.
This applies if your work involves:
- advice
- recommendations
- decisions that affect client outcomes
If a client claims financial loss from your work, this is the cover that responds.
Scenario 3 — if you sell products
You need product liability.
This applies if your product:
- causes damage
- injures someone
- fails in a way that creates loss
This risk exists even if you don’t manufacture the product.
Scenario 4 — if you hire employees
You need workers compensation.
This is a legal requirement. It covers:
- work-related injuries
- illness
- employee claims
Final note
Insurance doesn’t need to be extensive at the beginning. It needs to match the risks that already exist in your business.