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Small Business Insurance

Insurance cover for contractors, freelancers, and the self-employed.

Frequently Asked Questions

Simply put, it is insurance specifically designed for the self-employed and small business owners, rather than large companies.

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Insurance is needed to protect the business owner and also their customers from unfortunate incidents. There is also the matter of the UK law, which states that anyone who has an employee must purchase employers’ liability cover, otherwise they face a £2,500 per day fine.
Insurance is there to protect you as the business owner. When an unfortunate incident or accident occurs, your insurance policy really becomes your very best friend.

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By law, you have to maintain employers’ liability if you are a limited company or any business – limited or not – with employees. Even if you only have one part-time employee, you must maintain the highest level of employers’ liability. Certain trades, for instance a solicitor, must also hold professional indemnity insurance.

Sole traders only need to purchase employers’ liability if they employ someone. Limited companies, however, have to purchase the cover even if the director is the only employee of the company. The only exemption for limited companies is in the case of single director company where the director owns 50% or more of the shares.

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You need to have insurance in place from the very first day you start trading.

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Crunch Insurance has been designed and priced for the small business market and aims to be the most transparent offering in the market. We strive to ensure that only relevant cover is provided, and at a price that is affordable. We also give as much focus and time to the claims procedure as we do to to everything else. We succeed or fail based on how we handle your claims – it’s as simple as that.

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Public liability insurance protects the business owner against a claim from the member of the public for financial loss, accident, or injury. It also protects the member of the public for any accident or injury sustained due to the business.

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We think this is one of the main covers you should have. Not only does it protect you, the business owner, from claims, but it also protects members of the public.

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It provides a financial award to a member of the public who is injured or has property damaged whilst you are visiting them or they are visiting you.

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No. However many clients, and certainly local authorities, would refuse to work with you if you did not have it.

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Employers’ liability insurance provides a financial award to a member of your staff who is injured or has property damaged whilst in your employ during working hours.

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If you are a limited company (regardless of staff numbers) or you are not limited but employ any staff (even a part-time person only), the law requires you to maintain this cover.

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It provides a financial award to a member of your staff who is injured or has property damaged while in your employment during working hours. This is a protection for both your business and also your employees.

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Professional indemnity insurance (also known as PI insurance and E&O insurance), offers protection for the business against a customer suing you for a financial loss that they believe you caused through negligent advice and services. The policy can cover both the legal defence and the award.

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If you are giving advice as part of your contract or as part of the work your business does, it is certainly advisable.

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PI insurance covers legal defence costs and awards for negligent advice to a customer which causes them to suffer a financial loss.

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Business interruption insurance covers the loss of income that a business might suffer due to a disaster.

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This is not a legal requirement, however it is a cover that is there to protect you the business owner, rather than your staff or your customers. A loss of income could have dramatic effects on your business; in fact, many businesses simply could not survive a loss of income.

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This cover generally provides protection against three main areas, the first being your loss of gross profit. This provides a financial backup to cover your regular outgoings while you are unable to trade, for instance staffing costs to retain your staff, premises costs, utility bills, etc. These are all ongoing costs you may still have, even if you are unable to trade.

Second, there is your trading profit. If you have suffered an insured loss, it does not mean that you should have to suffer a loss in your regular profits. This section will look at your historical profits in a similar period and would look to reimburse these to you.

Finally, there could be an increased cost of you continuing to work. For instance, you may need to maintain your current premises even though you can not trade from them, but you also need to secure new temporary premises in the meantime. The ICOW (increased cost of working) is there to ensure you are up and working as soon as possible.

Please note that property damage isn’t covered by our business interruption insurance cover.

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Lloyds is the world’s specialist insurance and reinsurance market.

Lloyd’s of London, generally known simply as Lloyd’s, is an insurance market located in London’s primary financial district, the City of London. Unlike most of its competitors in the industry, it is not an insurance company. It is a corporate body governed by the Lloyd’s Act of 1871 and subsequent Acts of Parliament.

The insurance business underwritten at Lloyd’s is predominantly general insurance and reinsurance, although a small number of syndicates write term life assurance. The market has its roots in marine insurance and was founded by Edward Lloyd at his coffee house on Tower Street in around 1688. Today, it has a dedicated building on Lime Street, opened in 1986.

In 2015, there were 84 syndicates that wrote £26.69 billion of gross premiums on business placed by a small but dedicated number of Lloyd’s brokers.

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Claims

A claim can be made by:
Calling the Crunch Insurance claims number: 0330 052 2302
Emailing our dedicated Crunch Insurance claims address: claims@crunchinsurance.co.uk

Writing to us at:

Crunch Insurance Claims
GHG
Barclays House
20 – 24 Upper Market Street
Eastleigh
SO50 9FD

Please tell us as soon as reasonably practicable after the incident has occurred and provide any requested documentation within 30 days. If we are not given the information required or any statement in support of the claim is misleading or is found to be incorrect the claim could be rejected.

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Complaints

We are proud of the service that we provide and of our careful selection of intermediaries we trust to service the policy. Occasionally, things may go wrong and if this happens we have a procedure in place to fully investigate your complaint and, where appropriate, to make changes to prevent a recurrence.

If you are unhappy with any element of the cover we provide or any aspect of our service or have a cause for complaint, please contact:

The Compliance Officer
Crunch Insurance
Seico Group
2 Goldstone Street
Hove
East Sussex
BN3 3RJ

Telephone: 01273 778888

If you remain unhappy with the way that your complaint has been addressed, you may refer to Lloyd’s at:

Complaints, Lloyd’s, Fidentia House, Walter Burke Way, Chatham Maritime, Kent ME4 4RN
Telephone: 020 7327 5693
Fax: 020 7327 5225
Email: complaints@lloyds.com
www.lloyds.com/complaints

Complaints that cannot be resolved by the Complaints Team at Lloyd’s may be referred to the Financial Ombudsman Service at:

Financial Ombudsman Service
Exchange Tower
London
E14 9SR

Telephone: 0800 023 4567 (free from mobile phones and landlines) or 0300 123 9123 (charged at the same rate as 01 and 02 number on mobile phone tariffs)
Email: complaint.info@financial-ombudsman.org.uk
www.financial-ombudsman.org.uk

Financial Service Compensation Scheme
We are covered by the Financial Services Compensation Scheme (FSCS). You may be entitled to compensation from the FSCS if we cannot meet our obligations. Further information is available from:

Financial Service Compensation Scheme
10th Floor
Beaufort House
15 St Botolph Street
London
EC3A 7QU

Telephone: 0800 678 1100 or 020 7741 4100
E-mail: enquiries@fscs.org.uk
www.fscs.org.uk

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