Employers Liability
The one insurance that every business must have as soon as they employ anyone at all is Employers Liability, which protects against claims from employees. This type of insurance is vital, and a legal requirement for any business that employs people, either on a permanent or freelance basis.
Public Liability
Public Liability insurance is designed to protect business owners from claims that come about as a result of injury or death of a member of the public, and can also apply to damage caused to property that happened as a direct result of your business activities. This type of insurance is not legally mandatory and is more likely to be taken up by businesses where members of the public have access to their premises.
Director's Insurance
Many people believe that owning a limited company means that by the nature of the trading entity, their own personal liability is 'limited'. Although this is the case in many instances, there are many others when directors can be sued directly and so it is worth consulting with an expert advisor on what a director can and cannot be held liable for.
Professional Indemnity Insurance
This covers your business if it acts in a professional capacity, which means it applies to any business that is involved in giving advice. Some
The one insurance that every business must have as soon as they employ anyone at all is Employers Liability
Equipment Insurance
Equipment Insurance can be incredibly valuable as it can insure against the theft or damage of things that would be costly to replace, such as computers and other expensive equipment. The more of this type of apparatus you own, the more you should consider this type of insurance.
Buildings & Contents Insurance
This is something that you will no doubt be familiar with for your own home. It is a very general insurance which protects your business's property and fixtures/fittings.
Motor Insurance
People often neglect this type of insurance for business transport, especially if staff use their personal vehicle for business use. If this is the case, then business owners need to make sure that their employee's insurer has been updated and informed that the use of the car has changed. They also need to be fully aware of the additional health and safety requirements that come into force when staff are driving for business (apart from standard commuting).
Legal Expenses Insurance
No company wants to be sued, but there is always a risk that this can happen. While Professional Indemnity Insurance insures against action taken due to giving bad advice, and Directors insurance can cover legal costs in some instances, Legal Expenses insurance is a general insurance that protects against the cost of any legal action taken against the business. The cover in this instance will include court costs and legal fees.
Credit Insurance
In today's volatile market, being left with unpaid debts is always a risk, and Credit Insurance protects against this eventuality. It is particularly worth considering if your business is highly dependent on a small number of invoices being paid.
Of course, outside of the legally mandatory insurances, it is down to the individual as to the extent to which they choose to protect against risk, and there is always the tricky balance of cost versus cover. If you speak to a reputable insurance broker, they will be able to advise you on the best course of action for your individual business.
Anita Watson is Divisional Director (SME) at Oval Insurance Broking. For more information visit www.theovalgroup.com
