Having the correct business insurance is an integral part of your business’s survival. While certain insurance is a legal requirement, other forms of insurance are not worth operating without. It’s no secret that in most cases, you can insure against pretty much anything. With this in mind, we take a look at various forms of business insurance to help you decide which best suits your business needs.
Legally required
Employers’ liability insurance -
It’s a legal requirement in the UK to get employers’ liability insurance to the value of at least £5 million as soon as you become an employer. In fact, you can be fined up to £2500 for every day you are not properly insured.*
Commercial motor insurance -
Needless to say, you must have the correct insurance for your company vehicles and provide your insurer with accurate information about drivers.
A very good idea!
Public liability insurance -
This covers the costs of claims made by the public or your customers that have been caused by your business. There is a strong case for taking out public liability insurance when you consider the potential financial implications of a claim.
Indemnity insurance -
Many professional organisations and their governing bodies will demand this of you, as will your clients. Builders, for example, will often be asked to provide this, accountants, surveyors, and architects, and some health care professionals also make good use of this type of cover.
Buildings insurance -
Your premises, which could be a devastating loss, are most likely essential to insure in order to keep your company from going out of business. Your bank will insist on buildings insurance if there are borrowings on perhaps your most valuable fixed asset.
Cybersecurity insurance -
Arguably the most important policy you could take out in today’s business world, this will protect you against threats in relation to data, software, hardware, and online. Without it, your business could be destroyed overnight. The consequences are complex; one scenario could be the legal and compensation costs associated with a customer’s personal information being breached. This could run into thousands and be caused by a simple click of your finger on a dodgy link.
Are you central to the survival of your business?
Shareholder protection insurance -
This allows you to buy the shares of another shareholder if they die or are diagnosed with a critical illness, so the existing shareholders keep control of the business.
Loan protection insurance -
If you can’t repay any borrowings due to illness or death, your financial commitments will still be met.
Key person cover -
This covers lost profits due to the death or critical illness of a key person in your business.
Group schemes -
Many businesses create group insurance schemes so if the worst happens, financial stability is provided to your team. This in turn may help your business’s survival.
Tailor your business’s needs
The list of potential scenarios and items you can insure against goes on forever. Create your own policy to suit your individual business needs.
Do you need help deciding on the best business insurance policies to protect your business? Browse our website