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Business Insurance

There are various different Business Insurance policies available to protect against financial losses that may be suffered during the course of trading.

Business Insurance Overview

Business insurance can protect you against losses incurred during the running of your business – for example, if a customer or employee makes a claim against you, or if your equipment is damaged.

The terms ‘commercial insurance’ and ‘business insurance’ are often used to describe employers’ liability and public liability insurance – the two main types of business insurance. But there are other types of insurance available, each one covering a slightly different aspect of business.

Public Liability Insurance

If a client slips and falls at your business, or you accidentally damage something of theirs while you’re working, this insurance could cover the claims and legal fees.

Product Liability Insurance

This can help compensate anyone who has suffered damage or injury because of a product you designed, repaired, or supplied.

Professional Indemnity Insurance

Professional indemnity insurance is for businesses that offer knowledge, skills or advice as part of their work.

Policies

And as each policy is different, it’s important to know what’s actually covered by your business insurance so you can fill in any gaps.

  • The main types of business insurance that you need to be aware of are:
  • Public liability insurance
  • Employers’ liability insurance
  • Product liability insurance
  • Professional indemnity insurance

However, if required you can also get cover for the following;

 

  • Business interruption insurance
  • Business property coverage
  • Key-man insurance
  • Credit risk insurance
  • Cyber insurance
insurance

Here is a summary of what each of the business insurance types is for so you know which to consider for your company;

Public Liability Insurance

If a client slips and falls at your business, or you accidentally damage something of theirs while you’re working, this insurance could cover the claims and legal fees.

Employers’ Liability Insurance

You’re legally required to have this insurance if you have any employees at all, even just one – temps, part-time or full-time. It can help cover the cost of claims made against you if an employee is injured or gets ill while working for you.

Product Liability Insurance

This can help compensate anyone who has suffered damage or injury because of a product you designed, repaired, or supplied. You don’t have to be the manufacturer to be liable for damages.

Professional Indemnity Insurance

Professional indemnity insurance is for businesses that offer knowledge, skills or advice as part of their work. If your work leads to a client’s loss of sales or damaged reputation, this insurance can help cover the cost of legal fees and claims.

Business Interruption Insurance

Taking out a business interruption insurance policy will cover you for loss of sales and profits during a period that you’re unable to operate due to unforeseen circumstances like floods or fires.

Business Property Coverage

This is insurance for the things that make your business tick – computers, mechanical equipment, tools, machines and stock.

Key-man Insurance

If there are particular people who keep the business going, you can insure them. Then, if for some reason those individuals can’t work you can be compensated for that loss.

How Can I Compare Cheap Business Insurance?

Getting your business covered isn’t about finding the cheapest option; it’s about finding the right package at the right price. As with all types of insurance, the costs and associated cover varies with provider but the internet is awash with comparison sites and so it makes sense to check the different options and prices available to you. The cost of your insurance will depend on things like the size of your business, how many people you employ and how likely your business is to suffer from fire, flood or theft.

It’s important to really consider what your business is at risk from and get a policy that will cover you adequately. So, think about need first, cost second.

Why Do I Need Small Business Insurance?

Small business insurance is there to help you in the event of unforeseen claims for losses or damages. Depending on the type of cover you have in place, it can help you get back up and running, and could cover any loss of profits if you have to close for a period.

Some types of cover are a legal requirement, like employers’ liability insurance if you employ any staff and motor insurance if you use vehicles for work. But what other cover you need will depend on your business. It could be worth protecting yourself against:

  • Claims from customers
  • Business interruptions
  • Damaged property or stock

What Insurance Should A Small Business Have?

The types of insurance a small business might need include:

  • Public liability insurance
  • Employers’ liability insurance
  • Professional indemnity insurance
  • Equipment insurance, which typically covers tools, machinery and computers
  • Stock insurance
  • Buildings and contents insurance

Do I Need To Get Specific Insurance For My Business?

Whether you run a guest house, work from a home office, or own a restaurant, your business insurance needs will be different.
It’s important to assess the risks that face your particular business and choose appropriate insurance. For example, if you’re an accountant or a solicitor, professional indemnity insurance can cover you if clients lose money because of advice you’ve given them. Or if you rely on computer systems, a cyber policy could help cover you for loss, interruption and damages to clients. Some customers might insist on public liability insurance before they work with you.

Do I Need To Get Employers’ Liability Insurance?

If your business has one or more employees you are legally required to have employers’ liability insurance to cover you if a member of staff suffers an injury or illness as a result of something that’s happened at work.

You’ll most likely need employers’ liability insurance if you;

  • deduct national insurance and income tax from wages,
  • decide when and where people work,
  • provide tools and materials
  • have people working exclusively for you that cannot be easily replaced.

Part-time, permanent, casual and temporary workers should all be covered by your policy and it’s worth checking if any unpaid help is covered too.

If you only employ close family, you may be exempt. But if you’re a limited company you’ll still need the cover regardless.
Your policy must cover you for at least £5 million, as legal costs and compensation can easily spiral. Most policies will cover you for £10 million.
You could be fined £2,500 for every day you don’t have employers’ liability insurance when you need it. If you can’t show your insurance certificate when asked, you could be fined a further £1,000.

Do I Still Need Business Insurance If I Work From Home?

It depends on the type of business you run. If you have equipment or store stock at home, you could find your regular home insurance policy won’t cover you for loss or damage and you might even find that working from home cancels out your home insurance policy should you need to claim.
If you just work a few days from home each week, then your home insurance policy should cover you. But if you invite customers into your home, then it’s worth looking at public liability insurance because this will help cover you if a client suffers an injury or damage to their property and makes a claim.

If you own vehicles in relation to your business, you’ll also need to have car or van insurance

Professional Indemnity Insurance – Do I Need It?

It’s not an insurance that every company will need. It applies to businesses that offer knowledge, skills or advice as part of their work. It might be needed by a self-employed individual like a consultant, an accountant, or a company. Certain industries require professionals to have this insurance under regulation, and sometimes client contracts will specify a certain level of professional indemnity insurance is necessary.

Find the Best Business Insurance

Starting a new business do you need business insurance?

Exciting Futures  was created as an all-in-one solution by bringing together the tools or services you may need to run your business! When you map out your business model, business insurance may be one of the overall parts your business needs to review if required and next steps.

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