Business insurance was designed to cover you for any claims arising out of damage to property or injuries to people while your business is being conducted. Protecting your business from claims arising out of professional errors or omissions is crucial for businesses that provide professional services. Effective insurance coverage is essential if you are serious about protecting your livelihood and business. Claims against your Business could potentially result in not just substantial cost to the company but to you personally – even Director’s of Limited companies are at risk – which is why Directors and Officers liability cover is also becoming crucial.
Here are the Ten of the most common questions regarding business insurance:
- What information do I need to tell my insurance company about my business? Your Insurers need to be aware of all the facets of your business in order to asses the risk and meet the needs and demands of your insurance requirements to ensure you are fully protected. Your insurance coverage could be canceled if you fail to inform your insurers about a material fact.
- WHY SHOULD I RETAIN MY WAGE ROLE Your Insurers need this information assess the size of your company and the potential liability you may have to other parties.
- What do I need to do? LANDLORD INSURED TO INSURE MY LANDLORDS PROPERTY? This depends on the terms of your lease. You don’t need to insure the buildings if the landlord takes care of them. But you need to verify what your lease says. You must ensure that you insure fixtures and fittings. No doubt you will decorate your shop fronts and increase the risk by adding your own fittings. They must be insured, as the landlord may not cover them.
- Do I really need public liability insurance? In this litigious age every business needs to protect itself from claims from third parties for damage to the their property or for injury. The business will be protected from any claims relating to legal costs or the payment of damages. This cover will protect you from legal costs, even if you are defending a non-winning, no-fee claim. These can easily run into the thousands.
- I PUT UP A DISCLAIMER SIGN AND HAVE PEOPLE SIGN THE DISCLAIMERS. Do I need liability insurance? Unfortunately yes. Although signs may be helpful in some cases, they are not very persuasive in law. A person who is injured might be blind or illiterate, and therefore cannot read signs. Even if they sign a waiver, they may still file a claim. This claim would need to defend itself.
- I EMPLOY MY FAMILY ONLY DO I NEED EMPLOYERS LIABILITY INSUANCE? The Employers Liability Act 1969 does exempt family members from cover but if you trade as a limited company then you are legally required to have cover as per the Act.
- I DONT HAVE A LOT OF STOCK, SO I CAN ONLY INSURE MY LIABILITIES Yes of course, but in protecting your business and continuing to trade you must consider the other aspects of cover that most business insurances provide. Loss of profits, business interruption, money cover, damage and loss to fixtures and fittings, leased machinery, etc. These are all covered by most leases.
- I SELL PRODUCTS TO PUBLIC. IF THEY CAUSE INJURY DUE to SOME DEFECT BEYOND MEY CONTROL, AM I INSURED. Public Liability policies can include liability arising from products supplied.
- MY PUBLIC LICENSE POLICY WILL COVER CLAIMS AGAINST YOU FOR ERRORS, OMISSIONS, OR DEFECTIVE WORKMANSHIP A public liability policy will only cover injury to the public or damage to their property caused by negligent acts. Professional indemnity insurance covers errors and omissions, such as wrongful advice. In the case of defective workmanship, a policy that covers public liability is not a guarantee you are competent to do your trade.
- WHAT ELSE DOES MY BUSINESS POLICY CONTAIN? As you can imagine, if the public are allowed unlimited access to business premises such as shops, offices, hotels, etc. It would be very easy for the opportunist to steal. Forcible entry is a requirement.