Most business owners don’t realise they can be liable for a whole range of accidents and issues, even if they seem unfair. With tailored business insurance you can build a level of cover to protect against the specific risks your business faces.
Your business, like all others, faces a level of risk as part of your daily operations. Business insurance is available to help protect your business against the impact of unexpected events or possible claims.
Does your business employ staff? Is your industry subject to specific regulations? Every business is different and certain types of insurance – like employers’ liability insurance – may be legally required based on your business’s profile. Understand the specific requirements and demands connected to your business to ensure you have the relevant cover in place.
Some industries or activities may require specific or specialist insurance policies. Make sure you buy the right products to reflect the risks and requirements of your business.
As your business evolves – growing and taking on new staff for example – your business profile, operations and requirements may change. Make sure your business continues to be protected against unexpected events and potential compensation claims.
Indemnity insurance helps protect and defend your business in situations where it is claimed that you have caused financial loss or reputational damage to your client. Examples include professional negligence, breaching copyright, losing or damaging documents etc.
Public liability insurance is designed to help shield your business against unforeseen costs resulting from third party injury or damage to property. This includes circumstances like a member of the public making a claim after experiencing an injury on your property.
A legal requirement for most businesses in the UK with employees, Employers’ liability insurance reflects the responsibility you have for the health and safety of your employees at work, protecting you against the cost of potential compensations claims due to work-related illness or injury.
Also known as cyber liability insurance, or data protection insurance, this type of insurance protects your business against the impact of cyber-crimes like fraud, hacking and data theft. It also provides cover to help manage the impact of sensitive data breaches and GDPR non-compliance claims.
Legal expenses insurance covers you for a wide range of things that might hinder business like a contractual dispute with a supplier. This type of cover also includes free access to expert tax and legal advice.
Business insurance – sometimes called commercial insurance – is designed to help protect your business when things take an unexpected turn. More specifically, it helps protect you from financial losses that you might suffer in the course of your day-to-day business activities. This could include, for example, someone making a compensation claim, or someone taking legal action against your company.
There are many types of business insurance, including:
If your business employs staff (even part-time or temporary), you’re probably legally required to have employers’ liability insurance. This protects you against compensation claims made by a staff member who has suffered injury, illness or damage as a result of their work.
The Employers’ Liability (Compulsory Insurance) Act 1969 states that employers are responsible for the health and safety of their employees while they are at work. Some businesses are exempt from this legislation. If you’re unsure, you should check the Health and Safety Executive (HSE) guidelines.
While employers’ liability insurance is the only insurance that’s mandatory under UK law, there are other types of insurance, such as professional indemnity insurance, that could be a requirement for your industry. In other words, you wouldn’t be allowed to provide services without cover. You should check with your industry regulator or professional body.
It’s also possible that you’ll need certain types of cover in place before you sign a client contract – your client might have specific requirements relating to insurance and, if they do, you’ll need to make sure that you have the relevant cover in place.
Whether or not you’re actually required to have insurance for your business, you may wish to till consider taking out a policy to cover you in case of any accidents, mistakes, damage, theft and legal fees.
Yes – and it’s a sensible thing to do. A combined business insurance policy is designed to provide insurance cover for multiple liabilities. If you include a wide variety of insurance covers within a single policy, you’ll have only one renewal date – and one document to read.
An insurer should tailor your combined policy to the requirements of your industry and the size of your business – whether you’re a sole trader working from home, the founder of a fast-scaling tech start-up or the director of an agency with multiple offices. You can amend your cover as your business evolves.
The core products in a combined policy usually include:
Depending on your business, a combined insurance policy might also include specialist products, such as cyber and data risk protection.
If you take out a business insurance policy – whether an individual policy or a combined policy – your insurer should tailor the policy to your specific needs.
The price you pay for your insurance (i.e. the premium) will vary according to factors such as the type of business you do, the size of your business, the typical size of your contracts, and the risks your business faces.
Businesses that face higher levels of risk will usually pay higher premiums. Insurers will look at, for example, the potential for accidents, damage and theft as well as legal disputes that could arise from a claim. They will also need to know if you or any of your employees visit client premises or conduct business where the public could be impacted if something went wrong. All these factors have a bearing on the types of insurance products you’ll need – and the level of cover.
When buying insurance – either online or over the phone – you should answer all questions accurately, and choose a high enough level of cover to ensure that you’re protected if you need to make a claim.
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