If you run a company, you’ll understand how much work, passion and love goes into making it a success every day. So it stands to reason then that you would want to make sure your business and workforce are safe and cared for should a problem arise.
There are lots of ways of doing this, and one of them is making sure you have all the relevant insurance policies in place.
But every company is different, and because of this, there are a number of different insurance policies out there for businesses to choose from. For example, you might need building/office cover, liability insurance or vehicle insurance, depending on what it is you do.
So, to help you out, we’ve put together the following guide. Below, we’re going to take a look at the different policies and what they cover, so you can make sure your business is properly protected.
1. Public liability insurance
Public liability insurance is a policy that has been set out to protect businesses against injury or damage compensation claims. These claims could be made by clients, customers, suppliers or other third parties that have suffered injury or property damages whilst at your business premises or when you’re working elsewhere, such as their home or office.
These policies are designed to cover the costs of any legal action or compensation claims being taken out against your business. So, if like many organisations, your business comes into contact with members of the general public at any point, then you’re going to need public liability insurance.
This is why most shops, restaurants, tradesmen, hairdressers, etc., will take out this type of policy. But any public-facing business could require a policy of this nature to protect themselves and others.
2. Professional indemnity insurance
Professional indemnity insurance protects you against claims of loss or damage made by clients or third parties. These claims are made as a result of an (alleged) negligent service you provided or inadequate advice that you offered.
For example, if you make a mistake on a document, lose important data or unintentional breach confidentiality, and this causes a client to lose money, they might take out a claim against your business.
Having professional indemnity insurance can cover any compensation claims and legal costs that arise as a result of alleged negligence or mistakes. As such, this type of insurance is often best suited to professional service providers or those who offer business advice. It’s also important if you deal with a lot of client data or intellectual property.
3. Employer’s liability insurance
Employer’s liability insurance is a bit easier to understand as it pretty much does what it says on the tin. This type of insurance policy covers your business for legal costs if a claim is made by a member of staff that has suffered injury, illness or property damage as a result of their work.
If your business employs any number of staff, then it is highly likely that you will need to take out employer’s liability insurance. That being said, there are some companies that are exempt, for example, those that only employ close family members. Either way, it’s always best to check if you’re exempt or not before making an assumption.
4. Commercial property insurance
Commercial property insurance, sometimes referred to as business buildings insurance, covers a variety of business premises such as offices, shops, pubs, etc. It is designed to cover the costs of repairs or rebuilding should your business premises become damaged or destroyed.
Some of these property insurance policies might also cover the contents of your business. However, this is not always guaranteed, so you should always check if you need a separate policy (which we’ll cover in the next section).
If you rent or lease your business premises from someone else, it is often the landlord or management that is responsible for insuring the building. That said, you should always double-check to see what type of policy they have and what is covered.
But no matter what the property, if you operate out of a business premises, you need to make sure it is correctly insured.
5. Business contents insurance
As we said above, in some cases, you might have to take out a separate contents insurance policy to protect the goods inside your building. For example, if you rent a property that has a separate buildings insurance policy that does not cover any of its contents.
Business contents insurance covers a variety of products, including equipment, tools, furniture, computer equipment, inventory and raw materials. This policy can cover the costs of replacing or repairing contents that have been damaged, destroyed, lost or stolen.
If you have lots of expensive goods, tools and equipment in your workplace, whether that’s a builders lockup, an office, a pub, etc., then it is worth getting contents insurance to protect your livelihood.
6. Stock insurance
Although a certain amount of inventory can be covered in a business contents policy, if you’ve got a lot of stock stored in one place, you might want to take more provisions. Stock insurance covers the costs of replacing or repairing any stock that has become lost, stolen or damaged.
This type of insurance can be particularly important if you have a large warehouse or lockup that holds the majority of the products you sell. It’s also a good idea to get a policy like this if you sell very expensive items or those that are more costly to replace.
7. Fleet insurance
And finally, another policy that is fairly self-explanatory is fleet insurance. This type of policy provides cover across a fleet of business vehicles. This typically requires that the business have three or more vehicles and is a great way to insure all of these under one policy rather than individually.
You may need (or want) to take out this type of policy if you have a number of vehicles used for your business. For example, tradesmen that use a number of different work trucks and vehicles or perhaps courier services that have a fleet of delivery vans and cars.