Business Insurance

Business insurance is a necessity for every company, protecting against natural disasters, manmade disasters and lawsuits. Insurance brokers can determine the type of insurance necessary to protect all aspects of the business from the building to the product or service. Insurance brokers can also find the best deals available to keep a company’s expenses low.

Types of Cover Available

Public Liability

Public liability insurance covers claims from individuals who are not employees of your company, but may be on the premises. This insurance also covers damage to their property as well as injuries sustained through trips, slips and falls..

Employers’ Liability

Employers’ liability insurance is required for businesses with one or more employees. This insurance covers claims that may arise if an employee becomes ill, injured or dies while on the job. In the UK, the policy should cover at least five million pounds if the company has employees. The protection is valid both within the workplace and outside the workplace. Employers’ liability insurance should cover the cost of legal fees, damages and compensation.

Professional Indemnity

This type of cover covers any claims from clients who suffer from your company’s negligence or bad advice. Most companies offer up to two million pounds in cover. Many companies need to change cover depending upon the types of projects secured by the business. Business owners should find a company that allows this type of flexibility.

Professional indemnity will also protect against an unintentional infringement of broadcasting rights, trademarks or copyrights. If a business unintentionally attempts to pass off a product or service as its own, professional indemnity insurance will cover it.

Professional Data Loss or Document Loss. Professional indemnity insurance covers missing, destroyed or damaged client documents or data. Insurance covers all data or documents while the items are in the possession of your business.

Dishonesty. If an employee, freelancer or director is guilty of theft from a client while under your business’s direction, professional indemnity insurance will cover losses from the theft.

Defamation. If any material is produced that may cause offence to another party or client, and the company is held liable, professional indemnity insurance will cover any related legal expenses and any damages incurred.

If a claim arises against the business and requires compensation, the insurance company should be contacted immediately. Immediate action could minimise the need for legal intervention. If a client withholds payment after a complaint, business insurance companies can pursue it on your behalf. If a business owner cannot correct a problem easiliy, business insurance companies can address this problem. Legal representation can also be obtained if a series of complaints are received on a project.

Combined Commercial Policies

This policy is typically recommended for commercial, warehousing or industrial trades. Many business owners combine two types of business insurance in one commercial combined insurance policy. For instance, a company may combine property damage insurance with public liability cover. Any other sections may also be added. Business owners should speak with independent brokers to determine the type of coverage available.

What to Consider When Selecting Insurance Cover for your Company

Size of the Client or the Contract. Insurance brokers will determine the cost of insurance based upon the size of the client or the contract. Simply convey this information to the insurance broker and a quote will be generated based upon this information.

Any Costs of Defence if Required. If a company is sued, a business owner should estimate the approximate costs of any defence. The cost of the insurance will depend upon the amount of defence required for any particular instance.

The Maximum Settlement that Could Potentially be Awarded Against a Company. Business owners should estimate the maximum settlement that could be awarded against a company. Based upon this estimate, an insurance agent can quote a price to a company requiring insurance.

Types of Trade Covered

Business insurance can cover almost all industries. Some exampless include: Restaurants, shops, cafes, offices, sandwich bars, salons, pubs, hotels or surgeries. Accountants, business and management consultants, engineers, home inspectors, letting agents, marketers and IT consultants also require business insurance. People in these industries will require professional indemnity insurance. Other insurance types may be combined to protect other aspects of the business.

Most businesses start off with the basics. Basic insurance will include: Employers, products and services liability. Most companies also add cover for stock, legal expenses, computers, contents and buildings. These policies are competitively priced. Business owners can typically obtain a relatively inexpensive policy if proper research is conducted.