QUESTION 2:
So how much is a policy going to cost me and where do I go for the best deals?

ANSWER:
The bad news is that getting indemnity cover isn’t like insuring a car or house. The cost and level of cover can vary widely and premiums can rise dramatically over the years depending on the claims record of your type of business. In general the amount you pay will depend on your profession, whether you trade as an individual or as a company with staff and a host of other factors. So as usual it will pay to shop around. Plenty of brokers will aim to find good policies and you can get details of local firms from the British Insurance Brokers Association at www.biba.org.uk or the Institute of Insurance Brokers at www.iib-uk.com. Before using any broker or intermediary you should check they are licensed to trade. Go to the Financial Services Authority’s Firm Checker facility at www.fsa.gov.uk to find out their status. It is also worth looking at the Member Search facility from the Association of British Insurers at www.abi.org.uk. You can also go direct for a quote from big name insurers like More Than and the business arms of the banks as well. Lloyds TSB, for example, promises discounts on premiums if you buy more than one business policy. Specialist insurers such as Hiscox are also worth considering – they often have the most flexible terms and pay out in a broader set of circumstances than their more mainstream rivals.