Your business is your livelihood. It (hopefully) pays your bills, your holidays, your home improvements and the food in your cupboards. All valid reasons to take out adequate business insurance, but did you know that you may also have a legal obligation to do so?
Business insurance is usually a set of insurances designed to protect you and your liabilities, which can include both employees and the public. These policies will each protect you against a different event or set of circumstances, with the whole set holistically covering you for (pretty much) every eventuality.
Which insurance you need will depend entirely on the function and scope of your business. For example, you may need insurance for vehicles or equipment, employers’ liability insurance and public liability, whereas the business operating next door to you may have no machinery to cover, but will require professional indemnity insurance and cover for business interruption. Some examples of different aspects of business insurance are:
Credit risk insurance
Key man insurance
Professional indemnity insurance
Public liability insurance
Cyber liability insurance
Business legal expenses insurance
Product liability insurance
Insurance isn’t entirely discretionary — for example, if you employ anyone you are legally obligated to have employers’ liability insurance. Certain professions will have regulatory bodies which will require you to implement policies — solicitors, for example, are obligated to have professional indemnity insurance. However, if you are a sole trader there is no legal requirement to cover your business; although it is always wise to consider the risks of such a decision — insurance can cover you for theft, accidents, damage and legal fees, as well as mistakes. Additionally, it’s always worth checking if a client needs you to have insurance prior to taking on work.
If you are unsure which insurance policies your business needs, speak to one of our team of experts!
