Business insurance: What’s the deal?

If you’re thinking of starting your own business, then getting yourself an appropriate business insurance policy (the most common three being professional indemnity, employers’ liability and public liability insurance) is certainly one of your top priorities. Not only does it mean that you’ll you protected against hugely detrimental financial loss, but it will give you that all important peace of mind, too.

Why do I need to get business insurance?

It might be a legal requirement that you take out insurance. If this is the case and you fail to get the necessary insurance policy, then you could see yourself being slapped with huge fines and even losing your business – which obviously, no businessperson in their right mind would want to risk doing.

A tailored business insurance plan will make sure your livelihood and hard work is guarded against the many, many risks that you’ll encounter on a daily basis. And it doesn’t matter if you’ve taken every precaution necessary to prevent risks from harming you, your business, your employees or your customers, you really have no idea about what mishaps are lurking around the corner.

What business insurance policy will I need then?

The type of the cover that you equip your business with will depend completely on the nature of your business and what services it offers. Each different type of insurance policy has a definite role in, thus protecting you and your business against a defined range of risks. The most common types are as follows:

Professional indemnity – will cover a business when it’s claimed against for financial loss sustained by a client due to incorrect advice or faulty services;

Employers’ liability – will protect against claims for injury or illness endured by an employee because of the nature of their work;

Public liability – will cover your business in the event of a client or third party claiming for an injury or property damage caused to them as a result of malpractice by your company/employees.

Is business insurance a legal requirement?

Generally, yes it is. For example, if you’re an employer, it is a legal requirement that you take out employers’ liability insurance, and failure to do so will eventually slapped with huge fines for each and every day your business was left uninsured. And, depending on what kind of industry you’re in, it’s quite possible that one or more of your employees could suffer illness or injury many years after working for your company, and for something like this, you’ll need to be able to prove that your business was insured for every day of their career with you.

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