A Guide to Business Insurance

Simply, business insurance is a necessary step to protect your company from losses, damage or to help cover the cost of being litigated against. Notably, if your business equipment is damaged, or if a customer makes a claim against your, business insurance can help to shoulder the financial burden.


Types of Business Insurance

More often than not, business insurance is used as a catchall term to describe an employer’s liability and public liability insurance, but other forms of cover exist. Here we will breakdown the varying types of business insurance, so that you can determine which is best suited for your practices.


Public Liability Insurance

A public liability insurance policy should be taken out to protect against the instance in which clients suffer an accidental injury or damage to their property. For instance, if a client slips and falls in your premises, or if you damage their property while working, public liability insurance will help cover the cost of the litigant’s claim. Although it is not a legal requirement, public liability insurance is recommended for any business in which a client will visit your premises, such as a retailer, salon or restaurant.


Employers’ Liability Insurance

Any business with employees is legally required to have employers’ liability insurance, whether they are temporary, permanent, part-time or full-time. An employers’ liability insurance policy can help cover the cost of claims made against you, such as if an employee suffers accidental injury, of believes they have been discriminated against.

Product Liability Insurance

Product liability insurance should be taken out to protect against any damage or injury that could be potentially caused by products you supply. For instance, a policy can help compensate anyone who has suffered on account of a product you have designed, repaired or supplied, therefore meaning that you don’t have to be the manufacturer to be litigated against.

Professional Indemnity Insurance

Professional indemnity insurance should be taken out to provide cover against a client’s lost sales or damaged reputation. For instance, if your business is a consultancy, or offers advice, skills or expertise, then you can be litigated against should any advice lead to a client’s loss of sales or reputation. Having professional indemnity insurance will help cover the cost of legal fees and claims.

Business Interruption Insurance

Fittingly, business interruption insurance protects your business during periods in which it is unable to run as normal. Specifically, a business interruption insurance policy will cover you for loss of sales and profits during any period in which your business is unable to operate, such as due to flood damage.

Business Property Coverage

A business property coverage policy will protect the physical contents of your business against accidental damage or theft. Simply, by having a business property coverage policy, you will receive a pay-out to help replace equipment such as computers, mechanical tools and stock, when necessary.

Key-Man Insurance

A more specialist type of policy, key-man insurance helps cover against the loss of particularly valuable employees who help keep your business going. For instance, if said individual is no longer able to work due to health reasons, you will be compensated for the loss of their valuable skills.


Credit Risk Insurance

Finally, credit risk insurance can be taken out by businesses that rely on client payments to stay afloat. For instance, if one or more of your clients is unable to pay up, then you can insure yourself against loss with a credit risk policy, meaning that you can still balance your books should the circumstance arise.