If you own a business, you need to insure it; without the right insurance, you are at risk of losing your livelihood should something go wrong. But business insurance can be a minefield and, with so many types available, it isn’t always easy to work out which one is the most suitable. Read on to find out the different types of insurance available to protect businesses, and exactly what they cover you for.
There are two main types of business insurance, with most businesses having either employers’ liability or public liability (or both), which covers the business if a client injures themselves — for example, if they trip over a sign in your office — or if an employee gets injured or falls ill while working for you. Product liability insurance will compensate should a person suffer an injury, or damage is caused, because of a product you designed, repaired or supplied.
Other types of insurance fill in the gaps left by these main policies, and include the following:
Professional Indemnity Insurance
Sometimes referred to as PI insurance, this covers your business if your client sues you due to financial loss or damage to reputation. For example, if you inadvertently shared information without permission, if you infringed copyrights in their name, or if they suffer a loss of stock or equipment (including documents and data). The policy should also cover legal costs.
Key-man insurance
If you have employees your business couldn’t trade without, you can insure them. Should they be unable to work, your insurance will cover you for any losses incurred.
Business interruption insurance
As we have all learned, there are unforeseen circumstances during which businesses are unable to trade. For this reason, it is often a good idea to cover your business for loss of sales and profits by taking out a business interruption insurance policy.
Business property coverage
This policy will cover the tools, machines, equipment and devices your business needs to keep trading.
Contact us if you need any help or advice regarding which policies you need to protect your livelihood.
