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When you're trying to get a new idea off the ground, it's easy to overlook small business insurance.

However, there are a number of potential pitfalls of doing so which could result in your new company going out of business before it's been established.

Read through the rest of this article to find out more about the common perils of not having small business insurance in place.

" No public liability insurance

If you're running your business from a premises where suppliers or customers visit you, your small business insurance provision should include public liability insurance.

This type of insurance covers you for claims regarding accidents that happen on your premises. For example, if you have a pub with a dance floor and don't take the necessary steps to ensure drinks aren't taken on, any liquid could cause someone to fall and they may want to make an injury compensation claim against you.

If you don't have any small business insurance in place for public liability, you could be sued personally for any loss of earnings or medical treatment the injured party has had as a result of their accident in your shop.

Starting a small business such as a shop without this insurance in place is risky and there's the potential that you could be held personally responsible for a sum of hundreds or thousands of pounds.

Things like wet floors, poorly stacked shelves and internal steps with no warning signs, are all common causes of accidents in shops.

" No professional indemnity insurance

Not every type of small business needs indemnity insurance, but for some it's essential. Let's say you're a copywriter; what would happen if you wrote something either false or libellous that was then printed in an article or online?

If your client finds themselves on the end of a claim from a third party, they may then pursue you for writing it in the first place.

Depending on the business involved and the seriousness of the claim, having no small business insurance in the form of professional indemnity could be catastrophic.

It's clear to see how starting a small business without this insurance in place has the potential to put a halt to activities for monetary reasons, before you've even had a chance to build a reputation.

It definitely pays to have a think about your business and get advice on whether or not you need professional indemnity insurance if you're not sure. The risks of not having this kind of small business insurance could be very costly, but you can buy peace of mind by taking out a professional indemnity policy.