What is Business Insurance?
Running a business within any industry is a challenge. From customers, to staff, to profit, the management of all three of these aspects can make your job both exciting and versatile, as well as stressful.
One of the most important elements of running a successful business is to make sure all parts of it are protected. This means you need to buy business insurance that covers a wide range of situations, so you are not left out of pocket in any event.
There are some types of cover under the business insurance umbrella that are required by law, but you will be able to create a bespoke policy covering the specific requirements of your business. Your business insurance quotation will depend entirely on the extent of cover you require.
What are essential features of Business Insurance?
There are a few features falling under ‘business insurance’ that will be extremely valuable to many businesses, and are mainly to cover certain liabilities (you can read more about them here). The best insurance for a small business will be a policy that includes:
- Employers’ liability insurance is required by law. Employees who suffer injury or illness as a result of working for your business have the right to make a claim against you, and you must be covered for this. Without it, not only will you be fined £2500 a day but you will be expected to pay out large legal, medical, and compensation costs the case be found in the employee’s favour.
- Public liability insurance will protect you against claims made by members of the public or customers should they be injured or fall ill because of your business (e.g., a slip on a wet floor in a shop, food poisoning from undercooked food in a café, car accident as a passenger in a taxi). This is not a legal requirement but is a highly recommended feature.
- Professional indemnity insurance is another layer of cover that will protect you from claims made by customers who feel they have lost money as a result of your advice or professional services. If you were to give financial advice, for example, that led to a client losing significant amounts of money, professional indemnity insurance would cover any reimbursement or legal costs.
What are optional extras for Business Insurance?
The optional extras often associated with insuring a business are:
- Legal expenses cover is a useful standalone feature for some businesses, it is also called business legal protection insurance. It will cover commercial legal expenses facilitate access to legal advice, whilst offering financial protection regarding the cost of legal action brought either by or against your business.
- Business interruption cover will guarantee your income if your business premises becomes inoperable after a disaster. It is intended to bridge the gap between closing and reopening, leaving the business and its employees in the same financial situation they have become accustomed to during employment (income, rent, etc.)
Why You Need Business Insurance?
Apart from the financial stability it can offer you as a business owner, business insurance will benefit your overall reputation as well. Ensuring you are covered for any potential eventuality mitigates impact on your revenues, and financial costs will be covered by your policy.
If you work with contracts, it may encourage greater working relationships as any company hiring or being hired to work with you will have peace of mind.