You might be a little confused by all the options for insurance when you start a small company. This article will explain the various types of insurance available for small businesses and the reasons they are important. You will need insurance depending on your business. A reputable insurance company can help you find the right insurance company. They will give you a tailored quotation, which is a customized quote that has been designed to meet your specific needs.
Property and buildings insurance
This includes the risk to your business property from fire, flood, lightening strike and explosion from gas escape. It also covers being hit by cars, trains, or aircraft. The majority of these policies fall under the ‘low-risk/high-stake’ category. This means that while the risk of damage is low, the cost of a disaster is high. You can extend the coverage to include accidental damage. However, it will not cover wear and tear or damage due to lack of maintenance. France is one example of a country in which property insurance is mandatory. This includes third party liability. Buildings should be insure for rebuilding costs. This is often much more than the market value. You must have property insurance if you own a business that lets out.
Liabilities
You should have public liability insurance. This covers not only the place where the business is located, but also any other area you might be working in, such as if you are doing repairs to clients’ homes. You will be covered if someone is hurt on your premises or due to your business activities elsewhere. The usual amount covered is up to £5million. Although this coverage is not required by law, it could lead to bankruptcy if a third party claims negligence.
Employer liability is a legal requirement. Employer liability insurance must be purchased for all employees. This covers claims due to accident or illness up to a statutory minimum of £10million.
Professional indemnity insurance is another desirable type of insurance. This insurance protects you from claims for mistakes you make in your professional capacity that result in client loss or damage.
Product liability insurance covers you for manufacturing flaws, design defects and other issues.
Equipment and assets for businesses
It is possible to protect business equipment, such as computers, against theft and damage. You can also extend this coverage to include other risks. You can also get business interruption insurance to cover theft and other damage to your equipment and tools. Also, key man protection will provide you with compensation for lost or injured personnel. Your equipment can be protected while it is transported outside of the premises with goods in transit insurance.
Essential cover
While this list isn’t exhaustive and there are many other types of insurance, it does give an idea about the three main types of insurance and why they are important. However, it is a good idea to speak with multiple insurance companies and get their opinions before buying. After all, they are experts!
