As a business owner, it is important to understand the different types of insurance that are available to protect your business. Not all insurance is a legal requirement, however having the appropriate insurance policies in place will not only protect your business but also your staff and assets.
Employers Liability Insurance
This is the only insurance that is a legal requirement to have. The Employers’ Liability Act states that is mandatory for all businesses, regardless of size, to have employers liability insurance in place.
By having this insurance you can claim back money from any compensation and legal fees that can be incurred from when an employee takes out a claim against the business.
This compensation and the legal fees can be very costly, so by failing to have this insurance you could bankrupt the business. The claims taken out are usually for any injuries and illnesses sustained while on site.
Product Liability Insurance
This insurance will compensate for any claims made due to products being of poor quality or miss-advertised.
Depending on the type of business you are running. You might sell products as part of your trade. If so product liability insurance would be good insurance for your business.
There could be times where one of your products is faulty, miss-advertised or cause injury to customers. This could then result in a claim being made on your business.
Due to this insurance not being a legal requirement, it is not always paramount. However the legal fees and compensation you might need to pay out when a claim is made against your products. Could land your business in some financial troubles. So product liability insurance should be considered.
Public Liability Insurance
This insurance takes into consideration any third party people that could become injured or ill on site. Third parties usually account for customers in a shop, or children and parents in a school or nursery setting.
There could be a time when a member of the public is injured or in a worst-case scenario killed while on your business premises. Taking out public liability insurance will help with the cover of any compensation claims taken out by these third party people.
Professional Liability Insurance
This insurance will cover you for claims that are made regarding the service you provide a customer. When you work directly with customers and offer them a service, you may find that you run into times when customers are unsatisfied with the service you have advertised.
Claims could be made because the poor service you have provided may have inadvertently caused harm to another person’s business. Also when a service is promised and the delivery is not carried out. Other issues could be providing customers with poor advice, neglecting their needs or misrepresentation of the service advertised.
When you take out professional liability insurance the money you claim back will help to cover for any compensations needed to be paid out or legal fees generated. Although this insurance is not a legal requirement, it is, however, a requirement for the legal and health industry.
This insurance will cover you for any vehicles you might use for the business.
Most fleet insurance will cover a minimum of two vehicles. Any vehicles registered under your business will legally have to insure. Taking out fleet insurance will help to cover for a variety of issues that can be faced on the road.
Such as breakdown cover, theft, accidental damage, and vandalism, etc. Also, your insurance policy will help to cover the costs of any compensation, replacements, and repairs vehicles might need.
This insurance is for protecting the property in which your business/es are located. There will be times in which the property you do business becomes compromised. This could be due to floods, electrical issues or fires.
Taking out property insurance will help to compensate for any assets that might become damaged due to these issues. Or even damage to the building itself.
When you take out this insurance you will be required to list down all the assets that you want to be covered by the policy. Also, this insurance would cover the costs of any repairs that might need to be carried out.
Property insurance is also handy to have in the case of a break-in. Theft can be detrimental to a business especially when an entry is forced and the damage is caused.
As a business owner, it is crucial that you consider all options when it comes to protecting your business. There may come a time when a disaster impacts your business. Failing to have the right cover can financially cripple the business which could lead to its ruin. So don’t let your business fall victim and carefully consider the best insurance policies to take out.