There is no legal obligation to get insurance cover when starting a new business, but it is strongly advised to investigate insurance options.

The most common types of insurance to consider are :

• Public and employers’ liability: This covers promoters and employees against any accident in the workplace that may cause damage to a person or property. It also covers any actionable act by an employee.
• Cover for stock, equipment and premises: This covers you against fire, theft and damage.
• Product liability: This covers you against claims for any faulty goods or services.
• Professional indemnity: This covers you against claims for actions taken by a third party who may have acted on the advice of the insured.

If you are opening a shop or intend to have the public to come to your premises, public liability cover is essential even though there is no legal obligation to have it.

Should an accident or incident occur that causes injury to a person or damage to property on your premises, it is likely that you will be held liable.

SOURCES :
Cronje & Cronje
Business Partners