There are many different types of insurance cover that a business will need to look into, and some that are required by law. You can find a full listing and evaluation of these on online comparison sites like Money Supermarket. But here is a list of some of the main policies that should be considered by businesses and details of what they provide if something goes wrong.
Personal Liability insurance
This type of insurance provides cover for claims for compensation from people outside your company; this may include people injured at your place of work or members of the public who are injured or belongings damaged because of your company. This policy will cover any compensation or legal costs resulting from a claim against your business.
Employer’s Liability insurance
If you have any employees then you need to take out this insurance by law. The policy protects you if your employee is injured at work, or becomes ill because of their work. This policy will also cover any legal costs accrued. You must purchase a minimum of £5 million in cover by law if you have any employees, although many policies will automatically cover you for £10 million.
The insurance will cover you if there is any damage to your place of work or your tools. This may include anything from flood damage to theft. If you take out this insurance you need to calculate how much it would cost to replace everything in your work place, down to your office tables and chairs.
Professional indemnity will cover you if your client loses money because of a mistake you have made, or because the work you have provided is deemed substandard. If your client makes a claim against you, this policy will protect your business by paying for compensation and covering any legal costs.
This helpful business advice was provided by Roger Nuffield.