Business Insurance

If you own and operate your own business, you are required by law to have a valid policy of insurance covering you against the liability of risks to any staff you employ and all third parties. This is the only thing that over which you have no choice. You should however consider covering your business and your livelihood against all risks. After all you never know what's round the corner in the modern world of commerce and industry and without adequate insurance protection, you could lose the lot.

It goes without saying that any business premises should be protected by a comprehensive buildings insurance that will provide cover against fire, flood and storm, but do make sure that you will be adequately compensated for any expenses involved in the recovery of your business in the event of such a disaster and that any losses of goods or contracts are protected. Most modern companies also insure against loss incurred through mechanical breakdowns, including power failures that disable their IT systems. Contents insurance is also vital.

Cover against theft and loss should be one of the first things any company considers when setting up, but do check to make sure that your policy covers good in transit. You should also be aware that general contents policies do not cater for dishonest employees defrauding or otherwise stealing from their employers, however separate cover is available from many insurance companies.

There are many aspects of any business that it is wise to insure, but most important are the policies that cover your liabilities.
Firstly the liabilities to your staff and other persons. If you employ others, you must by law have a policy of Employers Liability Insurance covering your personnel against injury or illness suffered as a result of their jobs. This type of policy is designed to allow for the payment of a multi-million pound level of compensation in the event of a claim against you for negligence leading to death or disability. Cover for Public Liability is also vitally important (although not compulsory) and provides a similar level of protection for you against claims made in respect of illness, death, disability, loss and damage to property belonging to third parties other than your direct employees.

You should also consider a policy of professional liability insurance. This indemnifies you against the expense of being sued for the provision of poor advice or service resulting in loss to them or their own business.
If you manufacture or supply components or other tangible product, you will be wise to take out a product liability policy that will cover you against claims in the event of damage being caused as a result of a fault in a product that you have supplied.
There are many companies that specialise in providing business insurance. After all, you insure your home, car and even the family holiday, so don't economise on protecting the thing that makes all these possible.