The basics of business insurance
Business insurance is in many ways a blanket term. After all, there are many distinct types of business insurance that cover entirely different eventualities. Given that every business is different, it’s important to properly understand the various types of insurance in order to know which might apply to you.
Hiscox insurance advises that it is the types of relationship that your business relies on that will determine the type and level of cover you need. Here is a basic overview of the various types of business insurance available to business owners you.
Employers’ liability insurance
As soon as you hire someone, you are required by law to get employers’ liability insurance. This will cover the cost of any compensation you might have to pay out to an employee who has suffered illness or injury as a resulting of working for you.
Employers’ liability insurance is not only an essential from of protection for any employer; you could face serious fines for not having it in place even if no one ever makes a claim.
Public liability insurance
This type of insurance is crucial if your business involves direct contact with clients and members of the public. If they visit your workspace, you need public liability insurance to protect you against any claim relating to an injury or damage to property they sustain whilst on the premises.
While you might think this only applies to shops and cafes, even small home businesses often need this type of cover. If you have a delivery driver making regular drop-offs for example, or even the occasional visit from a client, you have to protect yourself against any unforeseen mishaps.
Professional indemnity insurance
Professional indemnity insurance protects you against a mistake that results in financial losses for your clients. It is essential if your company offers advice or you handle sensitive data. We all make mistake, but you still need to be prepared to cover compensation claims if a client follows your professional advice and something goes wrong. Consultants or personal trainers are strongly advised to have this type of insurance in place, and businesses like accountants are actually required to have it by law.
It may seem obvious to some, but it’s surprising how often this type of business insurance is overlooked. Remember that you won’t just need insurance that protects the physical structure of your office or workplace, but the contents too. Then, if your office equipment is damaged or stolen, you will have the means to replace it.
Business interruption insurance
Business interruption insurance is often misunderstood. This is because business owners often assume they will be covered by other types of insurance in the event of a fire or a robbery. And while other types of insurance will cover the cost of lost stock or damage to property, business interruption insurance allows you to keep paying bills, rent, and wages while the business is temporarily unable to make money following a disastrous event.
The internet plays a integral role in the normal operations of almost every business today, and so this relatively new type of cover has become a vital form of protection for many business owners. Cyber insurance protects your business in the event that it is attacked by hackers or malicious software. It can also help protect you in the event of a data breach. If you handle data for a client, cyber insurance is a must.