| 05 August 2019

Top tips for choosing Business Insurance

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Written by Luke Faulkner

Support for Businesses - Choosing Business Insurance

You’re up and running, but before you do anything else - make sure you now protect you, your business, your employees and clients. Business insurance offers you protection against any operational losses.  Sometimes, during the normal course of business activities, events happen outside of your control which could result in a financial loss to your organisation. Business insurance is designed to protect both you and your business from any resultant claims from the public, your clients or employees.

What is Business Insurance?

Having a robust business insurance policy will provide peace of mind - safe in the knowledge that you and your business is protected against any losses suffered. Business insurance policies cover a broad spectrum of protection, with the most popular being public liability insurance, professional indemnity insurance, employers’ liability insurance, business interruption insurance, business health insurance and income protection.

 

Whatever sized organisation you will need some insurance and many clients will expect to see a copy of your insurance policies and excesses before they choose to instruct you.

Who needs Business Insurance?

Consider the following - as a business owner, surely you would want protection should something happen like an accident in the workplace, a professional mistake, theft or damage to your premises?

 

The time, costs and legal fees associated with sorting these problems are significant and can have a real impact on your business reputation and efficiency.

Do I need Business Insurance and what type?

Consider the following - as a business owner, surely you would want protection should something happen like an accident in the workplace, a professional mistake, theft or damage to your premises?

 

The time, costs and legal fees associated with sorting these problems are significant and can have a real impact on your business reputation and efficiency.

 

All businesses will require some insurance, since generally you will have clients, products or services. To help you understand what type of business insurance you might need, we’ve provided an overview of the types of insurance below.

Employers' liability insurance

Employers’ liability insurance is a legal requirement for any business who employs staff.  The purpose is to protect you and your employees and protects your business against the cost of claims for compensation. Claims can be made by employees and could include illness or injury that has occurred as a result of working for you.

 

This is essential for the protection of your employees and your business, and without it - you could be breaking the law.

Public liability insurance

If your business interacts with members of the public, via your own premises or off site, you will need public liability insurance. Public liability insurance covers two main areas; property damage made to a third party and any bodily injury.

 

A public liability insurance policy will cover compensation claims made against your business. This includes any associated legal costs to both the claimant and you, should your business be deemed as responsible for the claim.

Professional Indemnity insurance

Professional indemnity insurance is essential for any individual or business who offer advice or services to others. Should a client make a claim that the advice or service from you has resulted in a loss in revenue or damaged their reputation, it’s beneficial to have professional indemnity cover.

 

This type of business insurance will help protect you against claims of negligence, incorrect or inadequate information.  Most professional services ie Accountants, Lawyers, Solicitors, Building Surveyors etc would require this type of insurance.

Product liability insurance

Are you a manufacturer, wholesaler or retailer selling products? If so, you may need to consider obtaining product liability insurance. This insurance cover is designed to protect you against claims made from products sold, that lead to personal injury or property damage.

 

Any businesses who supply products to customers have a duty of care to ensure that the product being sold is safe and fit for purpose

Business interruption insurance

What would you do if there was a disruption to your business outside of your control which prevented you from operating as usual?  This could include, severe building damage, failure of utilities, supplier failure, customer failure, infectious disease amongst others. Can you afford the financial loss, which could be significant especially if you have employees?

 

Business interruption insurance is a policy designed to offer your company protection. Should your business face a financial loss due to an unforeseen event this cover will help the financial demands during and whilst fully or partially closed.

How much does Business Insurance cost?

Business insurance costs vary greatly between insurance companies and depend upon the types of cover you’re looking for, the size and nature of your business and your selected excess limits.

 

The following is taken into consideration when quoting your business insurance policy;

  • Profession or trade
  • Your annual turnover
  • Your premises public footfall
  • The number of employees you have

Policy prices for business insurance vary quite significantly, as every business is different with your own unique cover requirements – there is no “one policy fits all” solution.