Why having insurance for your small business is essential

  • 09 Apr 2018


Insurance is often viewed as a necessary evil for every small business, but it can also prove a lifeline for companies that find themselves in situations beyond their immediate control. 

Some elements such as employer’s liability cover or commercial vehicles insurance are legal requirements, while others such as commercial property, public liability and professional indemnity cover are mostly seen as essential.

Cyber insurance is also now seen as increasingly important as the threat from internet criminals becomes more real. 


Some types of insurance are particularly relevant for small firms, and can be the difference between staying in business and going bankrupt. Examples are loss recovery insurance and money cover insurance. 

Some insurances can also be used as benefits for employees, designed to offer them protection and help enhance their overall employment package, potentially helping to increase staff retention and make it easier for small firms to recruit. Examples here are private medical insurance for employees and potentially their families, life insurance, critical illness and income protection. 

FSB has launched the new FSB Insurance Service. This sees a new FSB member benefit being built by its members, run by its members, for its members. 

Delivering outstanding customer service is key to the venture’s character. As well as a full insurance broking service, it offers registered members advice, business continuity planning, credit checks, valuation services and enhanced cyber insurance.


To ensure all this could be delivered, the new sales team were in training for three months before the launch on February 1. 

The FSB Insurance Service team prides itself on taking all the time members need to get personalised advice for their particular circumstances. 

At the launch, FSB National Chairman Mike Cherry said: “As our insurance service is now built by FSB, run by FSB and owned by FSB, it has different motivations and values. 


“Our prime ambition is to support a thriving small business sector in the UK by giving our members timely and quality advice to help them achieve their ambitions.”

The business is run by long-term FSB members and experienced insurance brokers David Perry and Tim Lazenby. Mr Perry currently sits on the British Insurance Brokers Association’s Insurance Brokers Standards Committee and Smaller Brokers Advisory Board. 

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