business insurance Archives

What Insurance do you need for a small business?

Posted on 14th May 202126th May 2021 by Nova Blogger

Thinking about insurance may not be one of the most exciting things to do, but it is unfortunately necessary if you want to have a worry-free life. Understanding what kind of small business insurance you need for your business can seem like a daunting task, but if you break it down, it is actually quite logical. If you have a small business, you are legally required to have EL (employer’s liability insurance), which covers you should any of your employees suffer an illness or injury while working for you. In addition to EL, there are some other insurance policies that you should consider as a small business:

1) Contents and portable equipment insurance.

Do you use specialist equipment for your business? Or perhaps you have offices where you keep expensive equipment, such as servers, computers and printers? Protecting these expensive assets with an insurance policy is never a bad idea as you will be protected against a number of scenarios (eg. fire, a burst water pipe, etc). You might also carry a lot of stock on your premises and insuring them against theft and damage could save you in a big way in the future!

2) Public liability insurance.

Any small business should consider their need for public liability insurance. This kind of insurance will cover you in the event that you are taken to court as a result of a business activity which has caused damage or injury to another person or their property. At the end of the day, no matter how hard we try to be perfect in our business dealings, we are all human and mistakes can easily happen at any time. Your legal costs will be covered, as well as any compensation you need to pay to the injured party. Bear in mind that some large companies will only (understandably) award contracts to small businesses that are covered by public liability insurance.

3) Cyber Insurance.

In these modern times, the vast majority of companies use a digital system of some kind. While these systems can be protected by firewalls, virus protection and strong passwords, they are still vulnerable to cyber attacks. Cyber insurance can protect your business against malware and cyber attacks and cover any costs related to legal claims and compensation costs.

4) Directors’ and Officers’ Liability Insurance.

Directors’ and Officers’ Liability Insurance (also known as D & O) covers the directors and any other individual who has management responsibility in your business should they be personally held liable for their business actions.
This could involve breaches to UK health and safety regulations, errors in financial reporting and mismanaging the company pension fund.

Conclusion.

Still not sure what kind of business insurance is most suitable for your needs?
Don’t worry, we can help! Contact a member of the Nova Insurance team and we will give you expert advice
that is tailor-made around your business. Our call centre is open 6 days a week and calls are free of charge as we use 0800 numbers

What business insurance do i need?

Posted on 9th March 202122nd March 2021 by Nova Blogger

When considering business insurance, it’s important to think about the cover or covers you might need. Employers’ liability cover is a legal requirement for most UK based businesses with staff. Public liability insurance is important if you or your employees will be coming in contact with members of the public. Finally professional indemnity insurance is useful if your business offers advice, such as consultants, accountants and solicitors.

Policies you must have as a small business
There is only one policy you are legally required to have as a small business, and that’s employers’ liability insurance. This is often abbreviated to EL.

Employers’ Liability insurance or employers’ liability cover offers cover for your business in the event that one of your staff members claims they’ve suffered an illness or injury as a result of working for you. In the event of a successful claim it will cover the legal and compensation costs involved in defending the case.

What happens if you don’t have Employers Liability cover?
If you, or your business does not have appropriate EL then the Health and Safety Executive (HSE) can fine you £2,500 for every day you go unprotected.

What about if i am working from home?
Flexible working hours, no daily commute and less stress are just some of the reasons that running your business from your home could be a good idea. But whatever the reason is behind running your business from home, you need to make sure that you have the right insurance in place to cover your business activities at your home address.

Need a business insurance quotation?
Call Nova Insurance on 0800 083 1566 or click here to request a quotation.

Should A Tradesman Hire An Apprentice?

Posted on 19th January 201822nd March 2021 by Nova Blogger

Traditionally apprenticeships were the norm for hiring tradesmen. Currently, many tradesmen choose to hire an apprentice as a way to fill the skills gap that exists in the construction industry. Also, there are more and more people choosing to become apprentices in a particular trade instead of going to university.

Here’s a quick look at what it entails, and why many businesses are also choosing to take this route.

What Is It?

An apprenticeship is a government created work and study programme to help employers get skilled staff. It allows participants the opportunity to gain a recognized qualification and relevant work experience while earning a salary. They can be either a new or current employee but they must be over the age of 16.

There are currently 4 types of apprenticeships available. There is the intermediate level, then the Advanced level, then the higher level, and finally the degree level. Apprenticeship can last between 1 and 5 years depending on the level of qualification.

What Are The Pros and Cons?

As with any business decision, hiring an apprentice as a tradesman has both advantages and disadvantages, here’s a quick look at a few of them.

Pros

They are hard working and productive.
They tend to be long-term employees. You have a motivated and dedicated employee that has decided to take this specific route, which will mean they are less likely to leave.
Hiring apprentices can be a cheaper and lower risk way of hiring staff.
The government offers plenty of support, both financial and nonfinancial
You can train them the specific way you require.
It allows you to build a workforce with industry-relevant skills and qualifications at a lower cost than usual.
You are giving someone an opportunity.

Cons

It can be time-consuming. Due to their lack of experience, they often require close mentorship throughout the whole process.
You must commit to it for a minimum of 1 year, but depending on the level it can be up to 5 years.
There is both an initial cost and an ongoing one for taking on an apprentice.
There is the risk of them not liking the programme and deciding to drop out before the allotted time period.

How Do You Do It?

Before you hire an apprentice your business must be sure that your business is in a good position to take on another member of staff. It can be a good idea to seek both financial and legal advice to make sure you’re ready.

Once you know you are ready to hire an apprentice, then here are a few of the steps to take:

First of all, you need to choose the right apprenticeship framework for your industry and the type of apprenticeship. Then you need to find an organization that offers training to your chosen frameworks standard.

Next, you should check what government funding is available to help towards the cost of training and assessing the apprentice. Once this is done you can then advertise your apprenticeship. Then select your chosen candidate, get them to sign the necessary agreements and then they can begin.

If you don’t want to run the apprenticeship scheme, there is the option of using an apprenticeship training agency to do it for you.

For the majority of tradesmen taking on an apprentice turns out to be a good decision. However, it is important that it is done at the right time because your business has to be ready to handle the commitments that come with it. It is a good idea is to ask other tradesmen that have already hired an apprentice for feedback about it before doing it.

How Tradesmen Can Keep Safe and Warm During Winter

Posted on 20th December 201722nd March 2021 by Nova Blogger

Now that we have said goodbye to autumn and winter has started. The days can be bitterly cold and windy, with an added problem of rain, snow or ice. Working outside during winter is extremely challenging, so it is important to put measures in place that will ensure you stay safe and warm during this period. This way you can continue to be productive at work despite the many challenges that winter weather brings.

Here are 3 tips to help you stay safe and warm during the winter months:

Invest In Some Specialist Winter Work Wear

To avoid conditions such as frostbite or hypothermia, it is essential that you invest in some specialist winter work wear. The best option to keep warm is to go for 3 loose-fitting layers rather than one or two bulky items. The loose layers help retain heat better and if you get too hot, you can take off some layers to stay comfortable. Your clothes should be both waterproof and thermal, for the first layer try to find fabric that wicks away sweat from your skin and dries quickly, avoid fabrics like cotton and look for wool or synthetic based clothing instead.

Good old fashion long Johns can be a tradesman’s best friend in the winter, so invest in some. Proper gloves are very important as you will often be handling very cold equipment and materials, such as metal. Your gloves should be light enough to allow you to work, but should still offer excellent protection from the elements. About 30- 50% of body heat is lost via the head, so don’t forget your hat. Find a thermal liner for your hard hat, including a balaclava and scarf for your face and neck.

The weather can lead to some hazardous conditions on site, making it easier to slip and fall. Having the right footwear for winter weather can go a long way in preventing such accidents, so too will a bit of extra care when walking around on site.

Eat A Healthy Diet

More than ever it is important to eat a healthy diet, with plenty of fresh fruits and vegetables during the winter months, so as to provide you with the nutrients your body needs to boost your immune system and so protect you from catching a cold or worse, the flu. Make sure to invest in a Thermos flask, so you can always have a hot slightly sweet drink with you such as tea or hot chocolate to warm up your system. It is important to stay hydrated as the cold weather can dehydrate you quickly, so too can alcohol and caffeine.

Take Frequent Breaks From Working Outside

Take frequent breaks from working outside to go indoors so you can warm up and dry off. Learn to be vigilant for the signs of hypothermia, such as uncontrollable shivering and slurred speech, and if you or any of your colleagues have these symptoms, get help immediately. If at all possible, try to do outdoor work during the day when it is light, and indoor work in the mornings and evenings when there isn’t much light outdoors.

Since there is little you can do to control the weather, if you have to work outdoors in winter, the only option is to be adequately prepared.

By following a few simple steps, you can stay safe and warm while on site throughout the winter period. On days when the weather is really bad, just take a break, it is better to be safe than sorry. Use the time to work on other areas of your business, such as your marketing, finance or any administrative tasks you have been putting off doing.

How Can Tradesmen Keep Their Tools Safer?

Posted on 18th July 201722nd March 2021 by Nova Blogger

Tool theft in the UK has been on the increase in the last year, with a value of approximately £30,000,000 in equipment stolen. Thieves have become more sophisticated, stealing anything from a few tools to a whole van. Many of the tools are usually stolen from construction sites, equipment lock ups and tradesmen’s vans.

Apart form trade skills and experience, tools are one of the most important asset a tradesman owns. To begin with they cost a lot to buy, and without them a tradesman can’t earn any income. Replacing them can be very expensive so keeping them safe is a must. Even if you are in a position financially to replace stolen tools, the time taken to do so is inconvenient and may result in loss of income. So here are a few ideas to help protect your tools from theft.

Van:

Most of the time your tools will be in your van, so the first step is to make your van secure. You can increase your vans security by investing in additional safety locks to make it harder for potential thieves – these can range from deadlocks to slam-locks to plate locks.

It also goes without saying that the van should be fitted with an immobiliser if it does not come with one installed. Make sure you have a fully functional alarm installed, preferably one that is wireless, and remember to install a small CCTV camera in the van to keep watch.

On Site:

When you are on-site, try to make sure that you keep your van parked in a busy area. Only take out the tools you need for a particular task, keeping the rest of your tools in your van. If you have to store tools on site, make sure they are kept in a secure toolbox and placed in a safe designated place.

At Home:

Don’t leave your tools in your van overnight, because they will be vulnerable. Try to take them out when you arrive home and put them in a secure place till you need them. If you have to leave them in the van overnight, then make sure they are locked up in a secure tool storage box and kept out of sight.

Place a warning sticker on the van to deter potential thieves that says “no tools stored in van overnight”. You can also cover all the van windows so no one can see what’s inside the van. Be sure to check that all your van doors and windows are locked before you leave it, and try to keep it parked in a secured garage overnight. If that’s not possible, then make sure it is parked in a well lit busy area.

Other Ways To Protect Your Tools & Equipment From Tool Theft:

There are a few other things that can be done to protect your tools and equipment. First of all, mark all your tools with a UV pen or have them engraved. This can help in two ways, by serving as a deterrent, and by helping to identify any tools. Another way is to put a list of all your tools on a national valuables and property register, and also mark them as registered.

Finally take out motor insurance to cover your van, and tool insurance to cover your tools. Get to know the terms of your policies, so that you know you are storing your van and tools in line with what is expected. Keep an inventory list of all your tools including photos, and receipts, in case you need to make a claim.

By becoming a bit more proactive, you can take steps to reduce the chances of your equipment getting stolen. Many of thefts are opportunistic, in that they tend to go for the easy targets, so any thing you can do to make your tools less attractive to thieves will help keep them safer.

How and Why Networking Can Help Your Business Grow

Posted on 16th June 201712th March 2021 by Nova Blogger

Networking has many benefits for any business. When it is done correctly it can lead to many long lasting and mutually beneficial relationships. It can open the door to new opportunities that you may not have been aware of, such as joint ventures, partnerships or referrals.

Also, it is a brilliant way to get your business known by others in your industry, and to build a solid reputation in your chosen niche.

Commonly Used Forms Of Networking

There are two commonly used forms of networking: face to face and online. For most businesses face to face networking is traditionally the chosen method. Both types are effective, and have their pro’s and cons.

For example with face to face networking, you will need to travel, which will requires time and some money. Online networking is usually free, but even though you can chat with other businesses, it is not the same as meeting them in person. It is usually a good idea to use both types.

Face To Face

Lets take a look how to use both methods, starting with face to face networking.

Be sure to attend regular trade industry events and more general business events, both local and national throughout the year. Try to make it a habit to attend at least one a month. Be sure to attend regular trade industry events and more general business events, both local and national throughout the year.

Consider joining groups that have a large cross section of members and host regular networking events, like your local chamber of commerce. It is also worth checking with any organisations that you are already a member of to see if they have any future events planned.

It is often a good idea to prepare before attending network events by getting your promotional brochures and business cards in order. Try to decide before hand what your business has to offer those you might be interested in building a relationship with. If at all possible, make sure you create a list of the businesses you would like to meet, and do some research on these potential contacts, so that when you meet them you can ask relevant questions.

When at the event try to meet as many of these businesses as possible, and make sure that you stay focused on speaking to those on your list first. While it is important to talk about your business and ask questions, it is just as important to listen to what others have to say. Remember to ask if you can exchange details with a view to getting in touch in the coming week.

Online

When it comes to networking online, it does not have to be complex. To begin with you can create a basic social media plan. It should include a list of all the social networking sites that are relevant to your business, together with a list of the types of businesses you would like to contact.

Then set aside a specific time every week to use these social media platforms to interact with your chosen businesses. Be helpful, try and offer advice or solutions to problems they might have.

Nurture The Relationship

Having done the initial work to get new contacts, you must take care to nurture the relationship. Make sure to follow up on any pre-arranged meetings or phone calls, and maintain regular contact by using email or instant messaging.

It may take some time for you to build rapport with your ideal contacts, but it usually worth it in the long run, because businesses feel more comfortable working with someone they know.

Networking has the potential to deliver a lot of value for a relatively small investment in time and money, so go ahead and give it a try, it could give your business a good chance of becoming more successful.

Things To Consider When Searching For The Right Business Premises

Posted on 17th February 201717th March 2021 by Nova Blogger

For any business, finding the right premises can be challenging. Business premises are one of the biggest expenses for a business, so it is important to find the right one at the right price, in the right location. It can often take longer than you think and you might need to look at many places before finding the right one, but it is usually worth it.

Here are a few tips to help with the process:

Decide On What You Need

Do you want to buy or lease? Both have their pro’s and con’s, it depends on your situation. If you are just starting up, it may be wise to lease somewhere until your business has proved its-self, before making the commitment to buying a property. However if you are an already established business looking to grow, then buying a premises could be a long term investment.

Which ever you decide on you will still need to workout what you need, based on a combination on both your businesses current and future plans. A few things to consider are: what size of premises, what layout, and the length of time you require the property if you are renting. Your location of choice will depend on your business type, and you may need to be near your customers if your business requires it.

Set a Budget

The most important thing here, is to make sure you can afford which ever premises you are interested in. Look at your business financials to get an idea of how much you can afford to spend, and do some research about the various costs you are likely to incur. For example there are costs to get the premises such as deposits, equipment, furnishing, renovations, moving, and any professional fees. Then there are also costs to run the premises on a monthly basis such as rents, heating, insurance, business rates etc. Once you have a realistic idea of your budget and the costs, then you can start the process of looking for your ideal premises.

Get Professional Help

Now it’s time to get professional help for your search. You need to make sure you seek professional advice before agreeing any terms, signing any paper work or paying any deposits so you don’t make any mistakes. Your accountant would be able to double check your budget to see if it is affordable.

Commercial property leases can be complicated and so there is a good chance you will require a commercial property lawyer. Also you will need a commercial property agent to find a list of vacant premises for you to look at.

Start Searching

At this stage it is important to try an see as many properties as you can. It may help to make up a schedule so you know in advance when you have to view properties. Setting up a checklist can be a great way to compare the properties you see, so you can make a better decision about which is best.

The list could contain all the elements that are important for your business. You can then score each property you see based on your criteria. At the end of your search, the ones with the highest scores can be put on a shortlist for further consideration.

Purchase The Premises or Sign The Lease

Once you have found your ideal premises, one that fits all your requirements and meets your budget, then it’s time to sign agreements and hand over deposits. Your professional advisers will help to guide you through each step of the completion process. After all that is done then it’s time to renovate, move into your new premises and carry on with business as usual.

Making The Switch From A Sole Trader To A Limited Company

Posted on 18th November 201617th March 2021 by Nova Blogger

You can choose to change your businesses status from sole trader to limited company at any time. Both formats have their pros and cons, the best choice will depend on a combination of your current situation and future plans. However there may be an optimal time to make the switch and that is when the benefits of being a limited company outweigh those of begin a sole trader.

So when might this be? Well here are a few possible situations in which it might be the right time to make the switch, but it is important to make sure you calculate the potential benefits and savings first before making the switch.

You may decide its time to make the switch if:

Your salary is increasing:

As a sole trader you have only one way to take your salary, and that is as a salary, plus you must pay both income tax and national insurance contributions on it. A company director on the other hand can choose to take their wages by a combination of salary and dividends. Dividends are free from national insurance contributions. So as a company director you can reduce your taxes by taking a small salary and the rest from dividends, making it a more tax efficient way.

You are looking for investment:

If you are looking for investors, then setting up as a limited company means that you can sell shares to investors. Also there is the added perception that a company has more credibility than an individual, and so many companies prefer only to do business with a limited company. Due to this, potential investors are likely to be more open to investing in a limited company as opposed to a sole trader.

You are concerned about liability protection:

As a sole trader you and your business are considered one and its debts are yours, so if your company fails then you are liable for it’s debts. A limited company on the other hand is legally a separate entity from its owners, and so if your company is fails then your personal assets are not at risk, because as a share holder you are not liable for its debts.

Your company profits start to grow:

When you are trading as a sole trader, you are taxed via the annual self assessment system and you and your business are considered one entity. A company, however is taxed via the corporation tax system. There are some potential tax savings that can be made by switching to a limited company.

For example, for the 2016 -2017 tax year, as a sole trader your tax free allowance is £11,000, you the pay 20% tax on any amount between £11000 and £43,000, after which you are taxed a higher rate of 40%. However for a limited company, the annual small profits tax rate is currently 20% on any amount up to £300,000. So switching to a limited company may be more tax efficient because even though it is taxed at the same tax rate, it has a much higher maximum amount.

You want to protect your intellectual property:

By registering your company name with companies house, you prevent any other person or business from using the name, it is now protected by law. However as a sole trader you don’t have this protection, and so it can be a lot harder to protect your name.

So there are some scenarios in which you might consider changing from a sole trader to a limited company, because to do so will result in some form of savings and other tangible benefits. If you do make the decision to switch, you then need to notify the HMRC that you are becoming a limited company, and then de-register as self employed. From there it is a simple process of registering your business with Companies House and then you can start trading as a limited company.

What Are The Allowable Business Expenses For The Self Employed?

Posted on 16th September 201617th March 2021 by Nova Blogger

Every year the majority of self employed people in the UK are required to file a self assessment tax return. For those that do it online, the submission deadline is January the 31^st each year and the 31^st of October for those that file paper returns. Here is a look at the subject of business expenses and how they are included in annual returns.

What are allowable business expenses?

They are defined as costs that are incurred “wholly and exclusively” for the purposes of the business.

Who is entitled to claim them?

Any one who is registered as self employed with HMRC. Theses expenses can be written off against any income you earn in the tax year, thereby reducing the final amount of tax you pay.

What can you claim for?

Not all expenses are allowed, you can’t claim for personal expenses, and there are some business expenses that you can’t claim for. It is very important to separate business expenses from personal ones, and if there is something you use for both, you can only claim for the business use.

For example if you work from home you can claim for costs such as heating, electricity, council tax, mortgage interest, rent, internet & phone. However you have to calculate them, based on how much time you spend working at home and how much space you use when you are working. Then you have to figure out what proportion of your total house costs they account for.

Here are some of the business costs that you can claim as tax deductible expenses:

The cost of goods that you are going to sell or use in providing a service.
If you are in the construction industry, you can claim payments to subcontractors.
Staff costs such as wages, salaries and any other staff costs.
Travel cost including car, public transport, taxi’s and other travel expenses.
Premises costs such as rent, rates, power and insurance.
Office costs such as phone, fax, stationery and other office costs.
Advertising and business entertainment costs such as websites, social media.
Finance costs such as interest on bank and other business loans, bank and credit card charges.
Professional fees such as accounting, legal and other professional fees.

Here are some of the costs you cannot claim as tax deductible expenses:

The cost of goods or materials bought for private use.
Your own wages, drawings, pension payments, national insurance contributions.
The costs of buying, improving or altering premises.
Cost for entertaining clients, suppliers and customers.
Repayment of the loans or overdrafts, or other finance arrangements.
The costs of buying premises for your business.
Any payments to clubs, charities, political parties and so on.

How and when can you claim them?

When you complete your annual self assessment tax return, you are required inform the HMRC of your deductible expenses for the accounting period in question. This is when you make your claim.

If you are self employed, you have to keep records of your business income and expenses for your tax return, so throughout the tax year you should keep all your receipts. It can also be very helpful to record them as they occur in some form of bookkeeping / accounting software, or on a simple spreadsheet. This will save a lot of time and make your final calculations easier when it comes time to file your annual taxes.

If however you don’t want to work out your actual costs, you can use the simplified expenses table provided by the HMRC for that tax year. It has flat rates for expenses like like vehicles, working from home, or living on your business premises. Also you can check out the HMRC’s site for other tools and calculators to help with you self assessment submission.