While business insurance is often referred to as an umbrella term for a single type of insurance, it’s actually made up of a number of different insurance products.
Some products are to protect your property and goods, some are to protect you from liability of injuries and sickness, others protect your company’s finances in the event of unforeseen circumstances.
It’s also not something you should just think about as what you need for now.
Business insurance grows and develops with you as your company grows and develops.
But there are some types of business insurance that you should consider from day one.
And depending on the type of business you have, there is some business insurance that you’ll be required to have by law.
Let’s look at this further.
When you need to have employers’ liability insurance
Employers’ liability insurance and road risks (motor insurance) are the only types of business insurance that you’re legally required to have by law.
If you have employees but don’t get employers’ liability insurance then you could face fines.
According to gov.uk, these fines could amount to £2,500 for every day you don’t have the proper insurance.
You could also be fined £1,000 if you fail to provide your Employers’ Liability certificate when requested by an inspector.
Employers’ liability insurance protects you against claims for compensation from work related illness or injury to your employees.
It doesn’t matter if you have full-time or part-time employees, or if they’re temporary or voluntary.
If you have employees, you need employers’ liability insurance.
If you’re a sole trader, or don’t have any employees, then you don’t legally need employers’ liability.
Employers’ liability is one of the only ‘essentials’, but there are some additional business insurance products we recommend any company has as a minimum when they start out.
Protecting you with public liability
It doesn’t matter what kind of business you have, you or your employees are likely to come into contact with members of the public at some time.
With this comes the potential for an accident that could lead to an injury, damage to property – or worse.
No matter whether you’ve come into contact with them in the street, in your own property or close to a work site, you could be held liable for any injuries or claims made against you or your employees by members of the public.
Public liability insurance will help you cover your legal fees to defend you against any claims.
If you lose, it could also help cover the costs (or part of the costs) of a payout for a successful claim.
Protect against claims regarding your products
Product liability is a type of business insurance that protects you against claims made because of illness, injury or property damage caused by your products.
It doesn’t matter if you make the products you sell, or buy them from a third party and resell them, you could become liable for any incidents.
This is something that often catches businesses out, because they think they’re only liable for products they manufacture.
Building the best business insurance policy
While these are the basic business insurance products most business’ will need, there are several others that will fit your company depending on your industry and type of business.
For example, if you have multiple vehicles, then fleet insurance can be a cost effective way of insuring your vehicles, rather than taking out individual policies.
If you also have an online presence for your company, then cyber insurance can help protect you against losses from cyber attacks.
There are many other types of business insurance that might be right for your company.
Talk to Rigby Financial about your business insurance needs
If you want to talk to a specialist advisor about the best type of business insurance cover for your business then get in touch with us today.
We’ve helped businesses from small companies to large national businesses insure themselves and create the peace of mind they need that they’re ready to deal with whatever is around the corner.
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