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What kind of insurance do you need?

Covered for Business

There are a few different types of insurance you need to know about to safeguard your business. By understanding what they are, you can make sure you’ve got the insurance you need just in case the worst was to happen.

At first glance, they can sound a bit baffling. But they each do a different job and are quite straightforward. Just remember to check what your cover does and doesn’t cover. Some things might be extra depending on the insurance company you choose. For example, with premises insurance, it might not include business interruption insurance which covers you if you cannot work because of damage to your building or the equipment in it. 

Employers’ liability

This type covers you if an employee sues you for getting injured while at work or becomes ill because of it. For most businesses, when you employ anyone, even if it’s part-time, on contract or work experience, you’ve got to have at least £5 million of cover in place by law. If you don’t you could get fined up to £2500 for every day you don’t have it.

But, you’ll be glad you’ve got it, if anything was to happen. Even if you think someone is safe at work – perhaps they’re sat at a desk all day – accidents can happen. As can health related problems such as stress. With employers’ liability insurance, you don’t have to worry about paying legal costs or compensation.

Business vehicle

Standard vehicle insurance covers you for personal use and driving back and forth to work. If you’re doing more than that you’ll need separate business vehicle insurance. So, whether you’re driving around in a car or a van, make sure you’ve got the right cover for you. You might also want to consider taking out optional extras like insuring any tools you take with you. Just think how much they would cost to replace if they were stolen.

Public liability

This kind of insurance covers you if a customer or member of the public is hurt or gets their property damaged because of your business. Unlike employers’ liability insurance you’re not legally required to have it.

In saying that, it does give you peace of mind that if there was an accident, you don’t have to foot the bill, which can be thousands of pounds or more if something serious has happened. Also, some contracts and customers insist that you have it. Just ask yourself if you can afford not to be insured if you were facing a compensation claim.

Premises

Whether you’ve got your own business property or you work from home, you’ll need premises insurance. This doesn’t just cover the building as well as its fixtures and fittings, it can also cover your stock, tools and any cash kept there. In addition, it can protect you if you can’t work following a fire, flood or break-in by making up the shortfall in your income. Also, you can get legal expenses paid if you have a problem with something like data protection, employment or VAT.

If you rent your business property, then it’s your landlord’s responsibility to insure the building. Just remember, that this won’t cover your business, so you’ll probably want to take out your own contents insurance as well as any additional cover.

Accident and illness

If you’re not working, you’re not making money. So, what happens if you have an accident or you’re off work ill for a long period of time? Well, with health and accident insurance you can concentrate on getting better without the worry of paying the bills. You can choose to have both covered, or just take out personal accident insurance with payments either made on a regular basis or as a lump sum.

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