Here we look at the ins and outs of business insurance, to help you decide what policy would suit your business best.
Deciding what type of insurance your business needs
The right insurance plan will depend on your business, its size and how it operates. There are numerous policies on offer, and you can tailor your package to cover specific areas of your business.
Public liability insurance
Businesses which encounter members of the public, whether on company premises or elsewhere, will most likely need public liability insurance. This coverage protects a business against compensation claims for injury or damage made by clients, customers, suppliers or other third parties. Examples of businesses which require this insurance include shops, restaurants, hairdressers, builders and tradesmen. Check your client contracts to see if a particular level of public liability insurance is required.
Professional indemnity insurance
For businesses that provide advice to customers, deal with intellectual property and confidential data, professional indemnity insurance is a must. Bad advice, faulty service and negligence can cost money and lead to legal trouble. Professional indemnity insurance will cover your legal defence fees and compensation payments, which can be hugely detrimental pay-outs if your business isn’t covered. Some professional bodies and regulators require their members to have this insurance, including bodies for surveyors, accountants and architects.
Employers’ liability insurance
Most employers are required by law to insure against liability for injury or disease to their staff resulting from their employment. Employers’ liability insurance covers your business in the instance of an employee making a claim against you and your workplace. Certain companies are exempt from the legislation, for example, if a business only employs close family members this insurance may be unnecessary.
Business buildings insurance
Business buildings insurance can cover the cost of repairing or rebuilding your property if it’s hit by a disaster like a storm, fire or flood, or if it’s damaged by something like vandalism or subsidence. Whether you work from home or have separate business premises such as a shop, office, or pub, business buildings insurance is usually a necessity. If you rent the premises, make sure to check with your landlord to see what’s already covered.
Business contents insurance
Business contents insurance will protect the contents of your business premises, your equipment and tools. In the event that any of these are damaged, destroyed, lost or stolen, contents insurance will cover the cost of replacements or repairs.
Product liability insurance
Product liability insurance protects you and your business should a customer suffer damage due to a faulty product provided by your company.
Personal accident insurance
Personal accident insurance can pay out compensation to people with serious injury as the result of an accident.
Business interruption insurance
Business interruption insurance covers you for any loss of income during periods when you’re unable to carry out business as usual, due to an unexpected event such as a flood or fire.
Business legal protection insurance
Legal protection insurance facilitates access to law and justice, by providing legal advice and covering the legal costs of a dispute, regardless of whether the case brought by, or against your business.
