Getting the Right Business Insurance
Many types of business insurance are on the market, and they are extremely important for companies to put in place. Insurance is one of the most important things to consider when starting a business many factors affect the type of cover that needs to be considered including but not limited to:
- If your business provides advice or professional services.
- The place or property a business is run from.
- If equipment is required to run the business.
- If a business employs staff for it to run.
Reason for Having Solid Business Insurance
Insurance is important for business because accidents, injuries, mistakes and unforeseen events can occur even with detailed planning, preventative measures and a risk assessment, some are unavoidable. Insurance can mean the difference between a business going under or a business surviving if a mistake or accident occurs whilst trading. The only type of business insurance that is enforceable slash mandatory by law is employers liability insurance. However, some trade and regulatory bodies may also require a business have insurance. An example of this would be the institute of Chartered Accountants in England and Wales, where regulatory bodies make it compulsory for practising members of Chartered Accountants to have professional indemnity insurance. Some types of insurance that are available and are most prevalent:
- Public liability insurance: were damaged after using the wrong type of product in a cleaning business.
- Employers liability insurance:
- Professional indemnity insurance: Can cover any products manufactured or designed that has a full that can cause injury or accident
- Product liability insurance
- Business contents insurance
What does Business Insurance Protect Us Against?
Pubic liability insurance is cover in case somebody has an accident or suffers a loss where the business may be at fault. For example, if a client’s upholstery was ruined by a cleaning business because the wrong product was used on it, PL would cover the costs of the accident. Employers liability insurance is a legal requirement in the UK and covers any business that has employees. Employers’ liability can cover claims made by employees this includes if the employee has been injured becomes ill or has an accident as a result of working for a business. Professional indemnity insurance is for businesses that give advice or offer a professional service. It covers the business if a mistake is made in work but leads to financial or professional loss for the client. This can include things like unintentional copyright infringement and libel claims to name a few. Product liability insurance is insurance for if a design, manufactured item or product even becomes faulty and as a result, causes an accident or injury to the public. It is important to note that even if a business did not make the product, they may be responsible for any accident or injury it leads to. Business content insurance is insurance that a business has/should have for any equipment that may be on the premises, this will cover if the equipment is lost, stolen, or damaged. This can mean the difference between being able to carry on trading should help the policyholder get back on their feet as soon as possible. Cyber Insurance protects you against data breaches and other cyber attacks. Cyber Insurance often comes with stipulations that you have the correct IT Security policies and procedures in place.
What is an example of not having the correct insurance?
One furniture fitter had to claim on his public liability insurance while working on a new-build house. A cabinet he had installed fell off the wall and knocked a fellow contractor off a step ladder, causing injury to the contractor’s wrist and back. The claim was settled at £25,235, but the furniture fitter only had to pay the excess of his policy, which was £250. In the US, Leo Welder launched the online start-up guide ChooseWhat.com in 2008. After purchasing general insurance policies failing to purchase Intellectual property insurance he ended up embroiled in a trademark lawsuit with J2 Global. The two parties reached a settlement and his company survived the entanglement but Welder was out of pocket several hundred thousand dollars paying for his defence fees before they reached the deal.
How We Can Help
We have partnered with PolicyBee to provide business insurance to all business types in the UK. Please click here for more information.
