Which business insurance
covers you decide to purchase will depend upon a number of factors. Employers’ liability insurance is a legal requirement for businesses with PAYE staff, professional indemnity insurance is required if your business offers a service, whilst public liability insurance is important if you come in contact with members of the public.
What type of insurance does my business need?
Your business activities will be the most important factor when considering what insurance your business needs. Could you face liability claims if your business has been negligent? Do you handle personally indentifable information? Are you are software based company
which provides a service through a platform? Do you have customers visit your premises? Do you own buildings, stock, computer equipment, which requires cover?
Below we discuss ten types of business insurance you may need to consider, however it's always worth having a conversation with an insurance broker to ensure the covers are suitable and designed to meet your requirements.
Type of industry we can accomodate:
Most common types of business insurance:
1. Employers liability insurance
Employers liability insurance
protects against claims arising from injury or illness of your employees. For example, an employee claims for compensation after falling at work and causing serious injury.
Employers liability is one of the few types of business insurance which is compulsory in the UK. All employers have a duty of care to provide a safe working environment for their employees and purchase the cover.
2. Public liability insurance
Public liability insurance
protects against claims arising from injury or property damage of persons other than your employees. For example, a customer claims for compensation after slipping on a wet floor at your premises.
All businesses have a duty of care to maintain a safe environment for members of the public (including any customers, suppliers or contractors). Public liability insurance offers financial protection should an accident occur which causes injury or property damage.
3. Product liability insurance
Product liability insurance
protects against claims arising from injury or property damage as a result of a fault with a product you have provided. Commonly purchased in combination with public liability insurance.
Product liability insurance is commonly purchased by businesses which design, manufacture or supply products to their customers. Any business that supplies products is responsible for their safety and should therefore consider product liability insurance.
4. Professional indemnity insurance
Professional indemnity insurance
protects against the failure to exercise reasonable skill and care in provision of professional or advisory services. For example, a customer requests financial compensation for a mistake that costs them money.
As a subject matter specialist, clients will rely upon your skill, knowledge and due diligence to deliver upon the agreed services. Professional indemnity can offer financial protection should something go wrong.
5. Cyber insurance
protects your business against financial loss arising from security and privacy breaches. Can include first and third-party losses. For example, a hacker breaches your business’s electronic security and steals personal information.
Cyber insurance can include a number of different covers under one product that aims to offer protection in an increasingly digital environment. Incident response services provided under the insurance can assist with mitigating the damage and potential costs.
6. Management liability insurance
Management liability insurance
is a package policy designed to protect small to medium sized businesses, with D&O insurance, EPL insurance and crime insurance can be offered together.
Businesses will typically purchase directors and officers once they reach a certain size, or have raised money from investors. Typically, packaged under a management liability policy this will protect the personal assets of the individuals whilst acting in a managerial capacity.
7. Commercial property damage insurance
Property damage insurance
is usually found under package policies such as commercial combined insurance for industrial or commercial businesses, or in an service based industry typically under an office insurance policy.
Property damage cover will usually be split between contents insurance, buildings insurance, or plant / equipment insurance. Examples of what could be insured include: fire, theft, accidental damage, storm, flood, escape of water, impact, explosion and riot.
8. Contractors all risk insurance
Contractors all risk insurance
is a flexible package policy designed for contractors working within the construction sector. Contract works insurance is just one cover available, typically purchased with other liability insurance covers.
Contract works purchased under a contractors all risk insurance protects the work in progress on a construction site in the event damage before responsibility has been handed to the principal.
9. Commercial combined insurance
Commercial combined insurance
is a flexible and cost-effective policy with a variety of different liability and property covers that can be tailored to the requirements of manufacturers, distributors, warehouses and wholesalers.
A policy will typically include, public liability insurance, product liability insurance, employers’ liability insurance, buildings insurance, stock insurance, business equipment insurance, business interruption insurance, personal accident insurance, and legal expenses.
10. Commercial vehicle insurance
Fleet insurance protects from an accident causing damage or injury. Comprehensive cover will provide for damage to your car, van or haulage vehicle. For example, a vehicle in your fleet has an accident and your driver is held accountable.
Fleet cover typically starts at a minimum of 3 vehicles and can be extended to insure a fleet of any size. The three levels available are the same as your personal car or van insurance. Third party / third party, fire & theft insurance / and comprehensive insurance.
Originally posted by Simon Taylor, insurance expert, Get Indemnity™
This guide is for information purposes and based on sources we believe are reliable, the general risk management and insurance information is not intended to be taken as advice with respect to any individual circumstance and cannot be relied upon as such.