Whether you are a sole trader, director of a limited company, or self-employed, having the right liability insurance is important. If you have been in business for years or just started, you want to drive your business forward. You don’t want any legal or costly complications that could threaten or even wipe out your business.
Employers’ liability insurance
This is required by law, unlike many other forms of liability insurance. It covers claims made by current or previous employees, which can run into millions due to legal fees or compensation. Even if you run your business from home or only employ one person, employer’s public liability insurance is still required to cover injuries or illnesses caused while in your business’s employ.
Public liability
Any business that deals with members of the public needs this type of cover. As a result, this is the most common type of business insurance. So even if you do not deal directly with the public, you will still need public liability insurance to protect you from any claims made by suppliers in the event of physical injury or property damage. This type of cover is vital to protecting your investment and not leaving you potentially owing millions in costs due to inadequate cover.
Product liability
If your business manufactures or sells products, then you need this type of cover. Don’t be fooled into thinking you don’t need product liability insurance if you don’t sell directly to the public. If you are part of the supply chain, you still need to be covered.
Director and officer’s liability
Just as the name suggests, this type of cover protects you against claims from investors, shareholders, employees, and competitors. This type of insurance predominantly covers the cost of investigations, which can be very high. This can include many scenarios, from an investigation by HMRC or a competitor claiming a director has stolen trade secrets to investors personally blaming a director for the business’s losses.
Professional indemnity insurance
This will protect you in the case of claims that come about because you wrongfully advised a client and, as a result, they lose money. Many clients who require your services will often demand that you have this in place. Lawyers, surveyors, photographers, accountants, professionals working in the healthcare sector, and architects are a few examples of professions typically taking out this type of cover.
Covering against other threats
Threats to your business’s survival can appear in many forms. That’s why, when you get the correct level of liability insurance cover, it’s worth discussing in detail any other insurance you may require. From IT and cyber insurance, commercial property, or vehicle insurance to goods in transit, to mention but a few. It would be futile to safeguard against one threat only for some equally damaging claim to ruin your business. It’s worth taking a bit of extra time to consider getting the correct level of coverage.
Visit our website to find the best levels of cover for all your business insurance needs.