Why do you need to insure your business?

It is imperative that you ensure your business to protect yourself. Insurance is there to give you the peace of mind that you and your staff are protected in the event of liability, fire, flood, storm or theft. You may also face personal liability claims and any succesful claim could be catastrophic to you personally.

What is professional indemnity insurance?

If your business is selling your knowledge or skills or services you should consider taking out a professional indemnity (PI) insurance policy. PI insurance protects your business against claims for loss or damage by a client or a third party if you have made mistakes or are found to have been negligent in the services that you have provided. Professions such as solicitors, accountants, architects, mortgage intermediaries,insurance brokers and financial advisers are required to have PI insurance cover as a regulatory requirement or as a result of their professional authorisation.

What is public liability insurance?

If members of the public or customers visit your premises or you visit theirs (including if you work from home), you should think about taking out public liability (PL) insurance. Public Liability Insurance covers any awards of damages given to a member of the public because of an injury or damage to their property caused by you or your business. It also covers any related legal fees costs and expenses. Public liability insurance premiums are based on the type of your business and rated on an estimate for the level of activity of the business. For most businesses this will be the turnover, although other factors may be used.

What insurance policies must I have by law?

Certain types of insurance are a legal requirement for some businesses, for example if you employ people, you must have employers' liability insurance whether they are paid or unpaid employees or work experience placements. If your business operates vehicles, then you must have third-party motor insurance as bare minimum.

Why should I cover my business premises?

If you have business premises, taking out a suitable insurance policy will ensure you are covered for damage from a variety of causes. Most standard contracts will insure your buildings and premises for a range of risks including: floods, fire and lightning, explosion, malicious damage, storms, riot, damage caused by vehicles. You could opt for 'all risk' insurance. This provides coverage against any other damage or loss specified in the policy, including accidental damage.

You need to insure your business premises for the full rebuilding cost, known as reinstatement, rather than just the market value. You will only be able to claim the cost of what you have insured, regardless of the amount of damage.

What is business interruption insurance?

This can cover the additional costs of operating your business if your daily business life is interrupted. If after a fire, for example, your business premises are smoke damaged and you are unable to use them for two weeks, business interruption insurance would cover the additional costs of setting up a temporary office elsewhere and hiring equipment, etc. You can also insure for loss of profit if you can't trade for reasons beyond your control.

What should I look out for?

Look beyond price when making your choice. You need a broker with the right motivation who will look after you personally and not just be looking to close a deal. An experienced broker is key and with the right advice you will ensure that you get the most approriate cover for your needs and at the right price. We can talk through the different policies and help you understand so that you can make the right informed decision.

Contact us for a free no obligation review of your business insurance.