Most business insurance policies are taken out voluntarily by businesses across many sectors for good reason. A whole host of accidents can be caused by your business where costly accidents claims could ensue.
There are different types of business insurance policies to suit various industries and the premium all depends on the type of business you have, the number of employees in your business and what your turnover is.
The benefits of taking out business insurance policies
• They cover the legal costs and expenses involved in defending claims made against your business.
• You can show your clients that your business is insured against loss or damage caused to them by your business.
• It gives you peace of mind that you have transferred any risk of loss or damage over to an insurance broker.
Public liability insurance
If your business comes into contact with the public, you run the risk of causing injury or damage to any person or their property, be it on-site or off-site. Public liability insurance will cover the legal cost to defend your claim made by members of the public as well as compensation for personal injuries or for any damage to property.
Professional Indemnity insurance
If an incident arises from either your actual, or alleged, breach of professional duty, then this insurance policy will indemnify your business against such incidences. It also covers for compensation payable to your client. Many professionals that provide a service, advice or designs take out this insurance policy. It is a mandatory requirement in many business sectors, including accountancy and engineering.
Other types of business insurance policies
Product liability insurance: An important policy for product manufacturers to insure them against product defects that causes damage to a person or their property.
Employers’ liability insurance: This is a mandatory insurance policy for companies that have one or more employees and must have cover for at least £5 million. It covers the cost of compensation for your employees’ injuries or illness that are caused on-site or off-site.
Income protection insurance: This provides cover if you are not able to work due to accident or sickness. It can pay up to 70% of your regular income, in a tax-free monthly sum, until you are able to return to work.
Choosing the most suitable business insurance policy
You should identify the risks and exposure that your business faces during its day-to-day operation. Also, it is paramount that you regularly review any changing circumstances in your business so that you can update your insurance policies. As your business grows, the likelihood is that your risks will also grow and you may need a different coverage level or more types of insurance policies.
Choosing a business insurance policy may be more complicated for some businesses than others. If in any doubt, you can get help from a licensed insurance broker. Whichever business insurance policy you do choose, bear in mind that getting the correct level of coverage is absolutely essential for your business if, or when, the worst happens.