Whether you are just starting a new business or running an existing one, there are many kinds of insurance that are not only prudent to maintain - they are required by law. It's important to consider the insurance needs of your business, your employees and your customers, both for your peace of mind and to keep your business on a proper legal footing.

One insurance essential of all small businesses is employer's liability insurance, which covers the cost of compensation for employees should they become injured or ill because of the work that they do for you. This insurance is legally required for any small business that employs even a single person outside of your immediate family. It will protect both your employees, who will be eligible for compensation for injuries and illnesses sustained at work, and it will protect you. You should not even consider operating without this insurance or you could suffer being shut down and heavily fined, even if you do not have any employees that make a claim. The minimum amount of cover you must have by law is £5 million, which covers compensation payouts and legal fees, but taking more coverage means that you will be less likely to run out of money before any legal case is settled. Most policies automatically provide cover of £10 million.

Public liability insurance is equally important, and will cover any injuries that a member of the public sustains on your property, plus any damage to their personal property that is caused by your business. Compensation for damages and injuries like this can run into the millions of pounds with legal fees adding to the total.

You should also look into office cover that will take care of your office building (if you own it) as well as the equipment and other contents of your office in case of flood, fire and theft, etc. A good policy will cover your office equipment like furniture and copiers, your lost income because of business interruption, and the loss of any cash that was on the premises.

Professional indemnity insurance or product liability insurance are also both important to doing business in an era where lawsuits are the norm. Professional indemnity insurance covers the advice and the services that you and your company provide, protecting you from bad advice, mistakes, and misinformation that lead to any kind of damages, harm or loss to your customers. Product liability insurance covers the more tangible, with cover that protects you from damages sought against you because of a fault with your product.

As a business, you are liable for the damages that are caused by the products you sell or the services that you offer, so you should take care to maintain liability cover for your own legal and financial security. The right insurance can protect you from the high costs of compensation or a lawsuit due to anything from a mis-calculation to product spoilage or bad manufacturing quality, keeping you open for business to fix your mistakes and move forward unhindered.