As the owner of your own company, protecting your business by getting proper insurance is one of the smartest things that you can ever do. In doing so, you are protecting your livelihood and your future financial stature. And while making the decision to insure your business is smart, choosing the right cover and policy for your business can be a tedious task. With so many insurance companies in the market offering varying packages, it is very easy to get confused and put off pursuing insuring your business.
We know how important it is for you to have your business insured so we have broken down the many cover options available to you, which will help make insuring your business a whole lot easier. The type of insurance policy you require from the following will largely depend on the size and nature of your business.
Public Liability Insurance
Public Liability Insurance protects you against claims for compensation from customers or business suppliers who have suffered an injury or property damage due to the product or services offered by your business or have suffered an injury on your business premises. For example, a customer falls and injures themselves on your business premises due to a puddle of water that is not indicated by a wet floor sign and they sue your business for compensation for the injuries sustained on your business premises. In this instance, public liability insurance will provide cover.
Another example would be a roofing contractor who goes on a call out. During this call out, he lets a ladder fall down and injures the customer. Public liability insurance would provide cover here in the event of a claim for injury compensation by the customer.
Employers’ liability insurance
If you have employees, even hired on a part-time, ad hoc or temporary basis, employers’ liability insurance is a must. Should you be sued by your employees for personal injury sustained during the course of conducting their job or for wrongful dismissal, employers’ liability insurance will provide cover against any claims for compensation. In the case of employee law suits, compensation payments and legal expenses due to successful plaintiffs can often be quite large. In such cases, insurance cover can often be the difference between the ability to move on and drive your business forward or suffering financial ruin.
Property and business interruption insurance
Fire, theft, or other damage to your business property, equipment or goods are everyday threats to the future of your business. A fire could wipe your business out for good, as could the theft of the equipment required for you to conduct your business services. Property and business interruption insurance cover can ensure that you get back on your feet as quickly as possible should the worst threats become a reality.
Professional indemnity insurance
Any professional who offers advice, expertise or knowledge to their customers can be susceptible to a professional indemnity claim. If a client suffers financially because of a mistake you’ve made or due to any negligence on your part, you may be liable for a claim. Anyone from accountants and architects to business consultants and financial advisors can be liable for a professional indemnity suit. Professional indemnity insurance protects your business by covering what may be quite extensive legal fees and compensation.
We hope this guide helps you to better understand how to choose the right insurance for your business. Be sure to talk to an experienced financial advisor or broker for the best quote for your business insurance needs.