Guide To Insuring Your Business
Need Help With Your Business Insurance?
Running a business can be difficult at the best of times, and so when you think about the complexities of arranging the right insurance cover, you might feel like your head is about to explode, so we've put together the guide below to help you out:
Deciding On The Type OF Cover You Need
The type of insurance that you buy will depend on a variety of different factors, including the size and the type of your business. Other aspects that will influence your insurance cover is your budget and whether any of your customers have specific requirements about the insurance cover you should have. We have complied some key elements of business insurance cover to give you a better understanding of your options.
Public Liability Insurance
This type of insurance cover protects you against claims from a third party, i.e. a member of the public. Whether the claim for compensation is from someone who has suffered an injury or whose property has been damaged because of your business or anyone representing your business, then Public Liability cover will pay for any compensation in addition to legal and hospital costs should there be any. Claims can be made from something as simple as a member of the public tripping on the edge of a rug in your shop, to something more serious, like an accident at a construction site.
Public Liability Is Compulsory For Some
Public Liability insurance is considered compulsory for companies that have a higher risk of being sued by third parties, specifically drivers of vehicles such as taxis or buses, those who offer professional services to members of the public, and those who manufacture or distribute products that could be harmful to the public. It is important for you to consider taking out Public Liability insurance if you come into contact with members of the public in your business. Whether an accident occurs at your premises or theirs, you may be liable, and therefore, it is important to have the necessary cover should such an event arise.
Employers’ Liability Insurance
Whether on a short-term, part-term or long-term basis, if you have employees, it is required by law that you have Employers’ Liability insurance. Should an employee become ill or injured (or even die) because of work, it is imperative to have cover as they may seek compensation from you. Depending on the type of illness or injury, the payments can be significant. As with Public Liability insurance, when a claim is made, Employers’ Liability insurance will pay for compensation and additional fees.
Commercial Property Insurance
In the event of something happening to all of your business equipment, such as it being destroyed or stolen, you have to consider if you would be able to afford to replace all of it if you didn’t have insurance cover in place. If the answer to this question is a resounding no, then it is worth thinking about taking out commercial property insurance to ensure the protection of your building and its contents. When thinking about Property insurance, it is important to factor in that the sum insured on your business contents list should be either equal to, or greater than the actual value of your equipment. This doesn’t mean just the things that you think are important, such as computers and printers, but the not-so-exciting stuff too, like filing cabinets and desks. It is vital to have an accurate cost in mind, because if you are under-insured, it is unlikely that you would receive the full value of any items you happen to claim for.
Another key aspect to consider is Business Interruption insurance. If there is a situation where you cannot work due to your property being damaged or stolen, or your premises being unusable, then Business Interruption insurance could make up for the money that you lose in these circumstances.
Sleep Soundly At Night – Protect Your Business
While there are a lot of factors and choices to consider, there is no doubt that having the correct insurance policies in place for your business will allow you to sleep soundly at night, without worrying about unfortunate and unlucky circumstances having a massively negative effect on your finances. If you need insurance for your business, get in touch with the Think Insurance team today.