There are many things that the novice business owner might feel can be easily dispense with in the first few months of running the new start up.  Unless they have been specifically advised that they definitely don’t need something like insurance cover, then they would be completely mad to start off without it.   To use the most simple analogy, if you have a business, however small, and  you employ anyone, in any capacity, from a cleaning lady to the delivery chap, you are legally obliged to take out employers’ liability insurance.  This covers the cost of compensating that employee if they are injured or becomes ill through your work.  Another important item is commercial motor insurance – if your business uses any vehicles for use in carrying out your work, you are obliged to have cover.   Public liability insurance covers you against the risk of compensation claims and legal action from customers and other members of the general public who may be injured by something one of  your employees or you have done, or if something has gone wrong or failed to do something that should have been done.  It is even more important if the law has also been broken.  Supposing you have a shop or storage facility and members of the public come in to browse, buy or use your services, if anyone fell and hurt themselves or a large box or container fell over and injured them or their vehicle, then this would need to be covered by public liability insurance.