When finding the right business insurance for your company you need to think about different aspects of your business. Employer’s liability is a legal requirement in the UK for most businesses that have employees and public liability insurance is essential if you work in close contact with the public.
So, what type of insurance does your business need?
When it comes to considering the right insurance for you, you need to think about the kind of risks associated with your business. If you don’t have the right cover in place you could find yourself landed with a compensation claim from an unhappy client as they believe there has been some negligence on your part.
If you have buildings, contents, equipment and stock then you may also need to look into insuring these too.
Public liability insurance
Public liability insurance covers your business in the event of a claim from a third party. If your business comes in contact with members of the public, whether it be inside your premises or elsewhere, you will need to consider this type of insurance. Public liability insurance can cover claims that involve injury or damage made by clients, customers, suppliers and other third parties. If you own a shop, restaurant, hairdressers, are a builder or tradesmen then you would need to take out this insurance. To find out what level of public liability insurance you need to check with your client’s contracts first.
Professional indemnity insurance
If your business gives professional advice or service to other businesses then you may need to look into professional indemnity insurance. Professional indemnity insurance will cover you for compensation claims and legal costs that may arise. Some professional bodies and regulators require their members to have this insurance before submitting tenders. These include surveyors, accountants and architects.
Employers liability insurance
If your business employs staff you are legally required to have an employers liability insurance policy. This type of insurance covers compensation claims made by a member of staff due to injury in the workplace, illness or damage as a result of their work. Some companies are however exempt from this legislation including some businesses who only employ close relatives. To check whether you are exempt or not check the Health and Safety Executive (HSE) guidance and seek further advice.
Business buildings insurance
Regardless if you work from home or have separate premises for your business, business buildings insurance should be one of the types of insurance at the top of the list that you need to have. If you don’t own your building and you rent you need to check with your landlord what is covered under your rental agreement.
Business contents insurance
As well as buildings insurance you should also look at contents insurance especially if you have specialist equipment, stock and tools. Business contents insurance will cover the cost of your contents or repairs in the event that these are damaged, destroyed, lost or stolen.
Product liability insurance
Product liability insurance protects your customer if they suffer damage as a result of a faulty product that you have provided. In the event that your product does cause damage, you may be liable for the damage even if you didn’t manufacture the product.