All business owners need to have insurance for their organisation. The purpose of insurance is to protect your company from any unexpected issues that might arise, such as a legal allegation made by a current or former customer. Business insurance is relatively expensive and so managers should fully educate themselves on the matter before investing in some for their organisation. As such, the discourse of our article today is going to focus on everything you need to know about business coverage before choosing your policy and provider. Keep reading to find out more information.
Do I Actually Need It?
Most businesses are legally obliged to have insurance, and there are only a few exceptions to this rule. For example, if you run a business which employs staff, then you absolutely must have an employer’s liability insurance policy. Your business’s line of work also means that you might be legally required to have additional coverage. Companies that run delivery services, for instance, need to have commercial motor coverage.
What Does It Cover?
This depends on the business insurance that you have taken out. The coverage you receive is determined by the type of policy you have chosen, and the level of cover that you add. If you are a cautious person who would prefer to account for all variables, we recommend getting a high level of coverage.
What Types Does My Business Need?
The business coverage you will need depends on the nature of your work, and the size of your company. For your reference, these are some of the most common types of insurance that organisations typically need:
- Public Liability
Public liability insurance is coverage that protects your business from legal action in case a member of the public has been injured, become ill or had their property damaged whilst dealing with your company.
- Employer’s Liability
As we mentioned before, the majority of businesses are legally required to obtain employer’s liability insurance if they employ staff. This insurance will cover any costs if one of your employees is harmed (or has their property damaged) whilst working for you.
- Professional Indemnity
If your company provides customers with guidance, then you will need professional indemnity insurance. This protects your business from allegations that you have given incorrect advice.
- Product Liability
On the other hand, if your business sells a product, then you should obtain product liability insurance. This kind of policy means that your insurer will cover any costs made by customers who have been harmed in some way by your product or if your product was damaged when sold to them.
How Much Will It Cost?
Once again, the cost of your business insurance will depend on the size of your business, the nature of your work, the type of policy you have taken out, and the level of your coverage. Your insurance claims history will also be taken into account when calculating the cost.
Now we have covered some of the basics that you need to know about business insurance, conduct some additional research and find the perfect policy for your company.