Regardless of what type of business you have, it is necessary to adopt measures to safeguard it from unforeseen mishaps and hazards. This is not just applicable to large businesses. Small business owners need to adopt suitable cover for their company too. However, not every company needs the same type of insurance.
Do I need business insurance?
The simple answer is yes. It is a legal requirement for all businesses in the UK that employ staff to have employers’ liability cover.
This is the only type of business insurance that is mandatory under UK law. Other types of insurance such as professional indemnity, may be required by regulatory bodies.
Main types of insurance for businesses
Choosing the correct insurance product(s) to suit your company’s needs is simple and primarily based on three factors:
- What type of business you run
- The size of the business
- What assets you need to protect
Below are the main types of business insurance that may be ideal for most small business owners:
Employee Liability Cover
As mentioned previously, employee liability cover is a legal requirement for UK businesses. Employers liability insurance covers incidents and injuries obtained by an employee during the course of work and protects you against the cost of compensation claims.
Public Liability Cover
Public liability insurance protects a business from compensation claims made by a member of public for accidents or incidents that occur while they were interacting with your company in any way.
Professional Indemnity Insurance
Professional indemnity insurance protects a business owner from mistakes made at work that results in financial loss to a client.
This type of professional insurance is often chosen by freelancers and small firms offering services pertaining to professional advice and consultancy. These can include agencies or firms offering services like graphic design, financial consultancy, tax consultancy, law-related services and medical services. If the service is related to financial gain and loss of the clients, opting for this insurance makes sense. If the client ends up losing money and faces losses following your company’s services- this insurance covers the legal damage and monetary compensation.
Business Property Insurance
Also referred to as commercial property insurance, this type of traders insurance policy protects your office/building, as well any property or items used by your company.
It covers the area where your office or business setup exists. It can also include warehouses and equipment located within the business setup. It’s ideal if you want to safeguard your business assets from unforeseen accidents like fire damage or water leakage.
Here to help
Whether you’re a builder working on your own, a hairdresser with a few employees or a multi-million-pound international retail company, we’ll find the right business insurance for you.
Get in touch with us at Business Choice Direct for a bespoke consultation and quote.