Business insurance can be a tricky field, but it’s one of the most important areas to research. Some insurance is a legal obligation, but other types of cover are voluntary. Putting together a bespoke package that suits your business should be a top priority, and it can save you a lot of trouble if the worst does happen.
This is the most common type of business insurance and most companies have it in some form. Quite simply, public liability covers you if somebody has an accident at your business. This can be something minor like a trip or fall or something more serious. The insurance covers any legal fees and claims resulting from the accident. Some businesses are more in need of public liability insurance than others (shops or car showrooms, for example) but it’s something that every company should consider.
Any business that employs staff, even if it’s only one person, is legally obligated to take out employers' liability insurance. Much like public liability, it covers you against injury to the workforce, or if one of your staff becomes ill.
Since this is a legal necessity, many businesses opt to use contract lifecycle management to ensure that their paperwork doesn’t lapse out of date. Using contract management software, a company can use the contract lifecycle management process to monitor contracts for changes in circumstances, regulations, and validity. This ensures that you’re always covered.
Although it isn’t a legal obligation, many companies take out business interruption coverage because it can protect them against huge losses. This insurance covers you if you have to close your doors and stop working. That may be due to fire or flood, or any other type of unforeseen event. As soon as your business can no longer operate, interruption coverage kicks in to protect you.
Business property coverage
Another optional extra that many businesses take out as standard, business property coverage insures the physical contents of your workplace. That includes everything from computers to machines and any goods or stock that you happen to hold on-site. Property coverage can save you thousands or even tens of thousands should the worst happen. Much like home insurance or renter's insurance for residential customers, it offers peace of mind since the physical property of your business is always covered.
Product liability insurance won’t be suitable for all businesses, but for some, it’s considered nearly essential. This insurance covers you if anybody is injured because of a product that you supplied. Crucially, you don’t have to be the manufacturer of that product to be liable — you just need to have sold it. That makes product liability an enticing prospect. It can protect you from some fairly large payouts if something goes awry.
Professional indemnity insurance
This is a type of coverage for businesses that has a trade in skills or advice, perhaps as a consultancy. Should you give out any advice that leads a client to suffer a loss of business (or reputation) you are liable for those losses. Professional indemnity insurance gives you protection and can potentially save you from a large payout.