The type of insurance you need will depend entirely on the type of the business would like to insure. This post will cover some of the more popular and relevant insurance types which are useful and can stop you wondering about “what if?” situations. You may also hear business insurance referred to as commercial insurance, both of these terms generally refer to the most common business insurance types; public liability and employers’ liability insurance.
Is business insurance a legal requirement?
Not all types of business insurance are a legal requirement, however for most businesses that have employees, you will be required by law to have employers’ liability insurance.
So, What Business Insurance Type Do I Need?
This assessment is quite easy to do yourself once you are acquainted with the various types of business insurance available, however at Central Insurance Brokers we are always on hand to help you get the right cover for your business, just give us a call.
There are a range of insurance types applicable to all businesses, such as a situation that may mean a dissatisfied customer claims that the work you have completed for them is not a true reflection of the contract. Or this could be a member of the public who is accidentally injured on your premises and seeks compensation which could result in a hefty payout for your business.
So let’s get into the business insurance types in detail:
Public Liability Insurance
This is probably one of the most common and well known types of business insurance, public liability insurance should be a definite consideration if your business comes into contact with members of the public. This is not just on your own premises, you are liable wherever your business operates. Not having public liability insurance will mean you are not protected against compensation claims from members of the public for injury and damage created by clients, customers and suppliers. Most business which operated in the public domain take out this insurance, such as hotels, bars, hairdressers and tradesmen.
Employers’ Liability Insurance
As covered above, this is most likely a legal requirement for your business if your business employs staff. Employers’ liability insurance covers you against compensation claims made by members of staff in events such as injury or illness as a result of working for your business. There are exceptions to the rule of this insurance type being a legal requirement, you can find out if you are legally exempt by checking the HSE Guidelines.
Professional Indemnity Insurance
Indemnity insurance can be important for certain types of business but as the previous two, not applicable to all. If your business provides a professional service or gives advice to other business or if your business deals with client data. This insurance type covers you against human error which could result in your client losing money/business and suing you, professional indemnity insurance will cover you for any compensation claims and also legal fees. This may be a requirement for your business, you may already know if it is, if not feel free to get in touch with us for free, professional advice.
Business Contents Insurance
Business contents insurance will cover the contents of your premises, this could be electrical equipment such as laptops and servers or tools used by tradesmen. You can cover your tools against theft, damage or loss, so you can repair or replace the damaged equipment quickly without causing a major impact in your business.
Similar to contents insurance, stock insurance will cover any stock help on your premises or in storage. You are again covered in the event of your stock being stolen, damaged or lost.
Business Buildings Insurance
Business buildings insurance should be a priority, as your business premises is, more often than not, the foundation of your business. This is commonly taken out by hotels, shops, offices and pubs, it may already be covered if you are renting however we recommend that you check with your landlord.
That covers some of the more popular types of business insurance, however there are a range of other business insurance types, that we do offer, which is not included in this post.
If you have any further questions about insuring your business and would like free professional advice, please get in touch with our business insurance experts today.