Business Insurance - Guide to Insurance for your business
Article, September 22, 2020
When starting up your own business, it is hard enough to know all the things you need to do, without the added issue of what insurance to take out.
Business insurance in essence is covering your business against any losses caused by events that happen during your normal business work. There are many types of insurance that you can take out, including coverage for property damage, legal liability and employee-related risks.
Understanding the type and level of business insurance is important and requires careful consideration, in order to ensure that your business has the cover it needs; this insurance protects your business from potential losses that the company could not afford to cover themselves. This type of insurance is sometimes referred to as Commercial Lines Insurance.
Types of business Insurance
As a business owner there are many policies that you can take out, here is a summary of the ones you may consider,
This insurance, known as Professional Indemnity Insurance Professional Indemnity Insurance protects your small business from financially crippling and often reputation-damaging claims by dissatisfied clients. Even the most respectable companies can find themselves in dispute with a client over a mistake.
Below are some of the danger areas your small business could be exposed to:
- Negligence - a breach of duty of care
- Intellectual property - where you unintentionally infringe on someone’s copyrights, trademarks, broadcasting rights, or you may inadvertently pass your business off
- Loss of documents or data - damaged, lost or stolen data and documents belonging to your clients
- Dishonesty - liability arising from the theft of your clients’ money
Public Liability Cover should be considered if members of the public, clients or customers visit your premises. If you run a home-business, and customers sometimes visit you there, Public Liability cover might also be a good idea.
Each year millions are paid out in Public Liability Insurance claims, and thousands of small businesses go out of business due to not having adequate Public Liability Cover in place. The reason for this is that people are becoming more aware of their right to seek compensation in the event of an accident.
If your small business does not have Public Liability Insurance in place and you get sued for compensation then you will be liable to pay the full amount of the claim. If you are not able to cover the costs of the claim then you may lose your business and potentially other assets including your home.
You may need a variety of different policies to cover the range of risks faced by your small business. This can make arranging your Commercial Insurance a real hassle. With so many different kinds of cover available it can be hard work sorting out what you really need, let alone getting quotes for it all. A Commercial Insurance Package combines the insurance a business typically needs into one convenient policy.
A Commercial Insurance Package makes a number of different covers available through a single policy. Most of the covers in the policy are available on an optional basis so you can pick and choose the elements of cover that are right for you and your business. Professional Indemnity and Public Liability Insurance are just a few types of cover included within this package.
If you run a business from an office, it’s important that you have the correct insurance cover in place. No matter whether you work alone from a desk at home or run a large business with dedicated office space, making sure you have the correct cover in place will protect you from a variety of risks including loss, theft or damage to office furniture, computer equipment and documents.
Usually included in the policy is Public Liability and Electrical equipment, covering you for any damage or breakdown.
One in three companies have experienced a cyber incident in the past 12-months, according to Bridging the Cyber Risk Gap, the latest research from insurer Chubb. Therefore, it is paramount to have Cyber insurance for your business so that you are prepared.
A significant majority of businesses realised they were less prepared than they had hoped. In many cases, that lack of preparation will not have been around companies’ digital defences, but upon their employees. Cyber insurance will cover you for any unfortunate attack on the business to ensure you return to 'business as usual' as quick as possible.
The amount of cover and policies you need will depend on the nature and size of your business but as a small businesses you will have some element of risk and therefore having the right cover means that you are protected whatever is thrown your way.
If your requirements are more complex or you wish to speak to a specialist advisor, get in touch today by calling one of our advisors on 02476 326213 to discuss your requirements.