But what are the main types of insurance you really need to consider? Good question, the majority of business will look at anything, from building and contents insurance to public and employers liability cover.
Lets take a look at the core liability policies that, as a business, you need to consider, if you havent already done so:
Employers Liability Insurance
Did you know that if you employ any members of staff, by law you must have some form of employers liability insurance in place? The only real exception to this is a business that solely employs family members.
Employers liability will cover your firm should an employee or ex-employee be injured, fall ill or incur damage to personal property as a result of any negligent business operations whilst working for you.
This form of business cover will not only cover damages claimed but can also cover legal fees incurred by your business whilst defending the claim. Without employers liability insurance you will be subject to substantial fines, along with the costs of repaying any legal fees and damages incurred by the employee or ex-member of staff.
Not really a cost many small businesses want to be faced with.
Public Liability Insurance
This type of liability insurance is not required by law; however, if your business comes into regular contact with members of the public, such as clients, passers-by, potential customers, etc, then it is essential protection.
Public liability insurance can cover your business if a member of the public is injured, falls illor incurs property damage as a result of any negligent business operations, much in the same way as employers liability does.
Public liability protection essentially covers the cost of damages claimed, should they win and can cover the costs of any legal fees associated with defending the case – up to a limit agreed with your insurance firm.
Whilst you are not legally obliged to have public liability insurance it does tend to be a policy that the majority of businesses take out. Did you know, for instance, that a number of firms, organisations, government bodies and individuals will not work with you if you dont have your own public liability insurance? Its certainly worth thinking about.
About The Author
James Barnett writes for Motaquote, an insurance broker based in South Wales that specialises in a wide range of business insurance for small firms around the UK. Headquartered in Williamstown, South Wales it is part of nationwide group, Cullum Capital Ventures (CCV).
Cullum Capital Ventures (CCV)