It’s a given that as a small business owner or an entrepreneur you have many decisions to make every day to ensure your business is running effectively. If you have just started out, then you must add another decision to your pile, a crucial one – what insurance cover to take.
This may seem like an overwhelming task because once you delve into it you will find there is so much to take in and choose in business insurance.
Do not dismay.. once you take a step back and approach it logically, and with the right help it’s pretty straight-forward.
Our handy guide has been put together to help you understand business insurance easily
Where to start?
The process of finding the right policy is simple; all you need is knowledge of your business and with our help you can arrange your policy quickly and smoothly.
Now let’s keep it simple. Business insurance is usually broken down into three areas:
- Liabilities
- Property and Business Interruption
- Business assets and equipment
Liabilities
This includes Employers Liability, Public Liability, Product Liability and Professional Indemnity. We have summarized each:
- Employers Liability
Once you have employed someone you are legally required to take out Employers Liability insurance. This will protect you and your employee in the event of any bodily injury, illness or disease sustained in the course of their employment with you. The minimum legal requirement is £10million. - Public Liability
This covers you against any bodily injury, illness or disease contracted by any third party (excluding your employees) as a result of your business. It also protects you against any loss of or damage to their property. The amount of cover you need is usually up to £5million but ultimately depends on the type of business you’re in. - Product Liability
This is your legal liability to pay damages as a result of a defective product you have supplied or sold under contract to a client. This normally applies to businesses that produce, supply or manufacture goods. - Professional Indemnity
Professional Indemnity covers you against clients who are making claims (against you) for poor services or negligence. These days such claims have increased because more people are prepared to go through the courts if there is a chance of compensation. Most professional businesses like accountants or consultants in general take out professional indemnity cover and many are legally obliged to do so. If you are in the business of giving advice or consultancy you should consider this to protect yourself.
Property & Business Interruption
Under this section you will find Property & Buildings and Business Interruption. We have summarised each:
- Business Interruption
An unforeseen event no matter how minor could lead to disruption and a loss of income for your business. Business interruption insurance has been designed to compensate you for the loss in income and any additional expenses like increased wages and accountants fees that may be incurred. - Property & Buildings
Buildings insurance is vital for your business. Cover is usually against fire, storm or flood damage but ‘all risks’ policies can be arranged where cover is extended to accidental damage.
Business Assets & Equipment
This is essentially your Business Contents and Equipment covered against fire, theft, water damage and other perils. If you hold stock on your premises it should be insured for its cost price and you can also protect any cash, cheques and other valuable documents. It is worth bearing in mind different limits will apply to money left on your premises, for instance during working hours, or if it has been stored in a safe.
If you would like any further information or advice on this, please get in touch.
