For any business it is important to minimise risks by having all the proper safeguards in place including proper terms of business and contracts which limit liability, where you can. The need to limit liability and insure against difficulties is particularly relevant for those selling to consumers.

Let’s take a look initially at the insurance you must have. Some regulatory bodies such as the Law Society impose a legal duty to have specific types of insurance cover. For the purposes of this article we have assumed you are not subject to this but do check with your relevant professional body if you are in any doubt.

Insurance the law requires

• If you employ people you must have employers’ liability insurance. This protects you / your employees from claims in respect of accident or illness suffered as a result of working for you. This HSE Guide to Employers Liability provides more details.
• Obviously do check that your motor insurance covers you (and your employees) in respect of the actual business use of your vehicles. Perhaps more importantly you need to make sure your company policies are clear on private use of company vehicles and use of private vehicles to attend company meetings – where the responsibility for insurance will rest with your employee.

1. Get professional advice from a qualified broker. You can find a broker on the British Insurers Brokers Association website
2. There is a real need to look at insurance which is not obligatory, just wise.

• Buildings and contents / equipment cover - all too easy to overlook the fact that you need this at the office as well as at home. If, like us, you run as a home office, maybe your home policy will cover to some extent but do check and do tell your insurers what the position is.
• Public / goods / product liability - insure yourself against the risks you take whenever you do business including things like injury from a product, financial loss when something you do for them is wrong and so on. Bear in mind there is a significant cost even if you are not wrong when someone argues that you are. It’s bad enough being threatened with Court and significant damages but how much worse if you’re also not insured?
• Key Person insurance - what if your most important key worker or Director was ill for some months or even died? Bear in mind (sorry to have to remind you) that it could be you. The cost of a well qualified, temporary worker can be very high if you can get them. Cover is available against the costs of replacement.
• Professional indemnity insurance – this is especially relevant to consultants and so called ‘knowledge’ workers. In fact anyone who gives advice can insure against that advice causing financial loss to their clients.

A major study of computer crime, by the DTI, has revealed that businesses are suffering significant financial losses as a result of virus infection. The 'Information Breaches' survey found that 50% of serious security breaches in firms were caused by viruses. It also showed that although 95% of firms use some form of virus protection, 35% continue to suffer infections, with some reporting hundreds of attacks every day.

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A: Pre-nuptial agreements are normally signed before a marriage and try to set out what would happen if the marriage ended. They can work well if there are no major changes and especially if likely big changes (such as the birth of children) are fully catered for.

In your circumstances a living together agreement might be suitable. This will set out who pays what whilst you are living together and will often go on to set out who gets what if the relationship should end. This would be a good way to protect your business and any other financial interests you have.

Both types of agreement are legal contracts and it is important that both parties fully understand what they are committing to. Courts, these days, will normally follow them if they’ve been properly drawn up and they can stop very major claims that would otherwise be likely to succeed.

Let’s face it, most of us only really want to stop claims in circumstances where a relationship is very short lived but then a claim is made for “half of everything”.

If you’re unsure about what to do, take advice. Initial advice with one of our specialist divorce and family lawyers is available online for only £50 plus VAT.