Insurance is an important way of protecting your business against disaster. But what sort of insurance should you have? That depends on a number of factors and what activities you undertake. Here’s a quick guide to help you decide:
Employer’s Liability – if you employ people you must have Employer’s Liability, it’s the law. This protects your staff if they hurt themselves while at work.
Public Liability – if a member of the public is injured on your premises, or you damage something that belongs to a customer or someone else you come in to contact with at work, Public Liability will provide recompense.
Product Liability – this provides financial compensation if you sell a faulty product which causes injury to a member of the public.
Buildings insurance – this covers the fabric of your building so that if, for example, your office burnt down, buildings insurance would pay the re-build costs.
Contents and Equipment – as this suggests, this covers your office contents and equipment. If you use a laptop or portable equipment, make sure the insurance extends cover away from the office.
Cyber – with data breaches and cyber attacks becoming more prevalent, cyber insurance is becoming increasingly important. This covers the time, cost and expertise involved in getting your IT and online systems back up and running.
Business Interruption – if disaster strikes, your business may not be able to trade for a period of time. Business Interruption will compensate you for loss of income during any downtime.
Professional Indemnity – if you give advice or provide a service, Professional Indemnity insurance protects you if you make a mistake which results in loss for your client. It is mandatory for some professions, such as architects and accountants, and is often built into contracts for other professions.
Directors and Officers – protects your business if someone makes a claim against one of your directors for an alleged wrongful act.