What type of business insurance do I need?
Insurance Expert, Simon Taylor
What type of insurance does my business need?
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.
Most common types of business insurance:
1. Employers liability insurance
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
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 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
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
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
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 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
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
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 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.