Everything your business needs to know about insurance

Everything your business needs to know about insurance

From sole traders to multinational corporations, every business needs to have some sort of insurance. However, understanding what needs to be covered and how much you should spend can be rather confusing.

So, with this mind, here is everything your business needs to know about insurance. Not only will these policies give you invaluable protection for every eventuality, they can also provide some much-needed peace of mind too.

Property insurance

This type of insurance will protect your building and assets in the event of anything being destroyed, lost, or stolen. Although this may also cover goods in a location other than your business premises, for example self-storage solutions from providers found here, it is a good idea to check your insurance policy first.

When it comes to compiling a list of equipment and stock, the sum insured must be equal to or greater than the value of your contents. If you under-insure, you might not be able to receive the full value of any items you claim for.

Businesses that own their own premises should also ensure the property is protected too. This is arguably the biggest asset you own, which requires sufficient insurance cover against things like flooding and fire.

Public liability insurance

This will protect you against claims for compensation from people who have suffered an injury at your organisation’s property or premises. For example, this could be a customer slipping on a slippery surface in a supermarket.

However, it also covers more serious claims such as accidents that have caused damage to a building or member of the public. Along with compensation, public liability insurance can also pay for legal costs too.

Employers’ liability insurance

Without employers’ liability insurance, which can provide protection if a member of staff is injured or becomes ill because of their work, you will be breaking the law.

Again, this type of insurance can help cover compensation and the legal costs of defending a claim, regardless of whether you employ full-time or temporary workers.

Professional indemnity insurance

Although a lot depends on your organisation or industry, professional indemnity is often a good idea if members of staff are selling their knowledge and expertise to customers.

Should a client or customer lose money because of your actions, they may be entitled to claim for compensation, which is where professional indemnity insurance can help.

What to bear in mind when purchasing business insurance

With public liability and professional indemnity insurance, you will need to choose a limit of cover according to the type of work you do and what could go wrong in the worst case scenario. However, some contracts may require a minimum level of insurance anyway.

You must purchase a minimum of £5 million in cover for employers’ liability insurance too, but most policies will go up to £10 million anyway. Then with property insurance, make sure every single item is accounted for, not just the equipment and stock with the most value.

Additional advice and information about business insurance can be found on the Association of British Insurers’ website.