Insurances your business may need

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When you own or run a business, insurance can seem like just another expense for an already tight budget. In reality, although it does appear to be a grudge purchase, insurance could bring you peace of mind and possibly save you from paying out expensive legal fees and compensation. 

To protect your business, your customers and your employees you may wish to consider the following 5 business insurance covers:

1. Public Liability Insurance

Is your business in contact with the public with either customers or visitors? If a member of the public or other third party receives an illness, injury and even damages to their personal property as a result of your business operations or lack of health and safety then public liability insurance could provide financial protection in the event of a claim.

For some businesses, clients may demand a minimum level of public liability before they will consider working with you, so getting the right insurance in place could be considered an important first step in winning business. It’s worth noting that for many businesses, public liability is not a legal requirement.

In 2015-16, liability insurers paid out claims of £7.2m every day – a staggering amount for workplace accidents and incidents. Out of that total amount – £2.3m alone was paid out for employers’ liability claims.

2. Employers Liability Insurance

Employers’ liability insurance is not optional if you have employees; it is compulsory by law and any business with one or more employees must have the appropriate employers liability insurance in place.

If someone you employ is injured at work – even by something as simple as a trip, slip or fall – or if they become ill as a result of working for you, then you may be liable for damages and any due compensation.

Making sure you follow health and safety guidance and having the right policies in place could help you make sure you keep the risks of a claim and ultimately the cost of your premiums to a minimum.

It’s worth noting that employers’ liability insurance cannot be purchased as a standalone policy and must be brought in conjunction with a public liability insurance policy.

3. Professional Indemnity Insurance

Businesses who provide professional services or advice may consider taking out professional indemnity cover. It is not a legal requirement although it may be considered an essential form of cover.

This type of policy could protect you and your small business against claims brought against you for malpractice, mistakes and errors, accidental loss of documents or breaches of confidentiality and claims of negligence in the delivery of your service.

Many trade-specific professional bodies or guilds will insist on you having cover in place before they agree to induct you as a member. The same could be said if you wish to tender for public sector work – councils and governmental departments will likely insist on your having in over in place before they agree to work with you.

4. Business Contents Insurance

Whether it is the computers in an office or the hairdressing equipment in a salon, it is likely that your business contents will be one of the most valuable assets to your company. Fire and flood damage or theft could stop you trading or delivering your services, so you may consider it a good idea to ensure you have the right cover in place to financially protect yourself against their loss. You may also decide to make sure any supplies or stock you hold is also adequately covered.

There are many more types of cover that you may want to protect your business, its assets and your services. E.g. You may also require commercial vehicle insurance if you run a delivery service or commercial property insurance if you own the building in which your business operates from.

Speak to one of our advisers about the levels of cover you require for your business. Call 08081686868.

Want to find out more? Check out our small business insurance page.