Starting up business - insurance question

Tiger_greeneyes

Savvy_Sue wrote: »

Ah, that would make sense. I don't know how these things work, of course, but it just seems a bit odd that you have to get a licence / badge, do nothing with it for a year, and only THEN start to use it.

All councils have different criteria. Our local council stipulate you have to have a full license for a minimum of one year to apply for a private hire license. Other councils might be two or three years etc.

Apologies for not being clear about that - I did read it through a few times before submitting and didn't pick up on that bit

paulwf

An extra £2,000 of expenses paid monthly is £167. If you don't think you can cover this then it is worth having a cold hard look at your financial projections. You will have lots of unexpected things to pay out for when running a business, you need to be making a decent gross profit to allow for this.

Basically I think you have to take the hit on the extra insurance in year 1 and like most businesses accept that in the first year you'll probably just break even. If you need to make a profit straight away but don't think your profit will be enough to cover this small extra expense then it isn't going to work.