Business Insurance | What Type Of Insurance Do You Need?

Does Your Business Need Business Insurance?

You may be in the process of starting a new business or you may have just bought an established business and you’re not sure if you need any  or what kind of business insurance you need.  Like I have said many times before, you never need insurance until it’s too late, and then when it’s too late, you wish you had taken out more insurance.

“Insurance is all about managing the risk to your business”

We live in a claim society where solicitors specialise in getting their clients the most compensation for their accident.  Some of these firms are considered in the industry as ‘ambulance chasers’ as they use aggressive marketing campaigns and some employ telesales personnel that call people randomly to see if they have had an accident in the last few years and whether they would like to pursue a claim on a ‘no win no fee basis’business insurance

Business Insurance – Public Liability

With all of this happening around you as a business owner you soon realise that you will need Public Liability Insurance for your business. After all if there is blame then there is a claim. You will need business insurance to cover any employees who work for you, including any contractors, customers or volunteers who may enter your office, workplace, factory, shop or premises. If there is a risk of anyone being injured on your premises, or any risk of damage or any loss of property then you should have business insurance to protect your business from any potentially costly claims for compensation.

If your business conducts business on other business premises then you should expect to provide a copy of your public liability cover prior to doing any work on their premises. It is standard for a business to have public liability cover with a minimum of £5 million of active cover before working on other business premises.

Business Insurance – Employers’ Liability Insurance

Employers’ liability insurance covers the cost of any claims arising from an employee being injured at work or becoming ill as a result of working for an employer.  Under the Employers’ Liability (Compulsory Insurance) Act 1969; it states that an employer who does not have employers’ liability insurance under the act shall be guilty of an offence and will be liable to a fine and possible imprisonment. So you see you are required by law to have Employers’ Liability Insurance with a minimum level of cover being £5 million although a level of £10 million is more satisfactory.

Business Insurance – Professional Indemnity Insurance

If your business is involved in providing professional advice to existing clients and new clients then it is advisable that you consider professional indemnity insurance. It is important for a business to limit any risks that its employees may face from possible claims for poor advice given that may have left a client with a financial loss. Mistakes can and do happen despite your best efforts and these kinds of mistakes can lead to costly compensation claims and huge legal fees.  Most professional organisations that companies belong to will often insist on their members having professional indemnity insurance as compulsory.

Business Insurance – Business Car Insurance

Is normally taken out where a business has two or more vehicles and many different drivers. Business car insurance allows the business to put staff on their vehicle policy as named drivers and take them off as required. These policies cover the vehicles to carry stock and personnel whilst doing business. Most of these policies allow the named drivers to use the vehicles for domestic, social and for pleasure.

Don’t start or operate your business without business insurance as you will need it at sometime now or in the future.

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