What is the best type of insurance for your business?
Before we look at what sort of company you are and what would be the best type of insurance for your business let us go through each different kind of insurance in detail. What they would mean for your business and who would benefit from this kind of insurance in the workplace. So, lets get started on some of the best coverage that you can get for your business, employees and much more.
First of all, you have to realise what kind of insurance you need legally, insurance that is good to have an insurance that is either optional or not really fitting depending on your type of business as a limited company.
Business Insurance that you need to have by LAW!
Building insurance – Most companies that operate there own building, whether it be an office or something else need to have their building insured by law. Just like your own home, you need to protect your assets. What this kind of insurance does is gives you a leg up if any one has decided to break into your business building and perhaps damage any equipment you would be covered. Although finding replacement and waiting for the time it takes to get back the equipment might have a detrimental effect on your business you will something in the way of compensation.
If you are a company that has a large abundance of stock in your inventory then you can cover this with a similar sort of buildings insurance if you wish.
Employer’s liability insurance – if you are starting up a new business and you are taking on your first employee then you are required by the law to take out what is known as employers’ liability insurance.
You can be exempt from doing this if you are the only employee in your own company who owns 50% of the company. If you do not employ anyone or if you are a sole trader then you do not need to worry about these types of things. If you also work with close family or like a family run business then you should also be exempt.
However, if you don’t have any full-time employees either because, you use temporary staff members or seasonal works you still are required to take out the insurance needed.
As you might come to know if you do not have any sort of liability policy you can be fined up to £2,500 per day if your business doesn’t have a suitable policy towards employers’ liability insurance. This of course, is dwarfed in size compared to the cost of the actual cover for employer’s liability insurance.
Industry-specific insurance policies – Depending on what sort of industry that you are in you are quite possibly going to need industry-specific insurance. These can be from recognised professions from entertainment, hospitality, construction, retail etc. If you are in business with any of these then you will more than likely need this type of industry-specific insurance. An example of this would be that solicitors would be required to carry an industry-specific insurance policy in order to practice law in the United Kingdom.
Public liability insurance – Although it is not required by law if you don’t have members of the general public walking in every day. It is pretty important to think about getting one as you never known who might be walking through your door any time soon.
Of course, depending on the type of business that you are related with, it might be a legal requirement to have public liability insurance if you are in the entertainment industry etc. As you will be working with many different people, seeing new faces etc.
If you decide to work in a public venue then be prepared to show your public liability insurance.
Luckily, if you decide to go ahead with public liability insurance then you will be covered via any damages and legal representation.
Vehicle insurance – Some companies let you have a company car, to which you need to as a company provide a third-party kind of insurance. If you are a nice enough boss to give your employee a company car then you can expect to be claiming on the policy a little bit more when it comes to this due to it not being a private car.
Business insurance policies you should consider having.
Product liability insurance – If you are a company that repairs or sells certain physical products, you might be held accountable for any injury for any employees or damage to these products by defects within product themselves.
Employee travel insurance – If you are a company that needs their employees to travel abroad, then getting their insured to travel abroad is a must as this will give you peace of mind as well as any company belongings that they might carry. Also giving your employees peace of mind should be your top priority as well, therefore giving them coverage by a reputable insurance company is a good idea also.
Professional Indemnity insurance – One of the most important type of insurances that you should consider having as a business. Because, this kind of insurance covers you against any claims made by clients which they might say has been claimed due to professional negligence. As you might be able to tell there are quite a few benefits for having this kind of insurance for your business.
Larger organisations usually require you to have professional indemnity cover before they will even consider hiring you. For contractors this is a must to have as this is common practise in many industries when it comes to umbrella companies and such.
If you are a contractor, freelancer or consultant. Then having this kind of insurance should be your number one priority as it might be required from your clients, however, it will cover all your bases.
Pollution risk insurance – If you are working in a company that manufacturers anything or work as a contractor in a gas filled area. Then this sort of insurance gives you much needed coverage and covers clean-up operations as well any possible claims against your business.
Here are a few more bonus insurance policies that you could purchase
Engineering insurance – As simple as you might think it to be, engineering insurance provides electrical, mechanical and loss of equipment within these types of insurance.
Business continuity insurance – Not really something you need to consider if you are living in the United Kingdom as this insurance covers things like major catastrophes. So, if you were living in Haiti then maybe. Although, if there are any disruptions to your work that aren’t your fault then you can also claim.
Key person insurance – This sort of insurance protects your business in the result of either you or another high end up employee was to disappear. We won’t go into the reasoning behind it but once this person is replaced you should be fine.
Intellectual Property insurance – Any modern business has a number of assets which are considered to be intellectual property. Like most businesses if you make designs, have trademarks or patents then you might want to consider having intellectual property insurance.