Whilst funding is our speciality here at BusinessFunding.co.uk, we understand there are a huge range of tasks required of the modern day entrepreneur in getting a business up and running. It is to that end that we thought it would be useful to give you an introduction into the world of business insurance. We’ve put together a beginners guide to help you get past the jargon and decide which is the right policy for your business:
- Public liability insurance – An essential cover for any business. Public liability insurance covers your professional interactions with clients, customers, or members of the public. It provides protection for your business against any claims made for compensation from a third party for damage to property or injury occurring as a result of your business operations. Basic – but necessary!
- Employers’ liability insurance – This is a legal requirement for any business that employs staff. The law requires a minimum cover of £5 million to be purchased even if you have just one employee. It helps protect your business from any claims made by employees for injury or illness suffered whilst working for you.
- Professional indemnity insurance (PI) – A form of protection that is relevant should your business operations involve providing professional advice or legal services to customers. Professional indemnity insurance will cover your business should any claims arise as a result of negligence, error, emission, breach of confidentiality or loss of documents. PI cover is usually taken out by businesses such as accountants, architects, consultants and similar professions.
- Office insurance – Office insurance could provide cover for a variety of your business’ assets. For example, office insurance could include buildings cover, business interruption cover, computer breakdown insurance – right through to employee dishonesty cover. It is usually packaged up with public and employers’ liability insurance.
Depending on your business, you may be able to capitalise on specialist packages designed for certain business types. For example:
- Shop insurance – If your business is run as a shop, there are a number of risks that need to be covered. Shop insurance usually includes the necessary public and employers’ liability cover, but also offers optional extras such as buildings cover, stock and contents cover (against fire, flood and theft), business interruption cover and money (cash) cover.
- Restaurant insurance – Restaurant insurance could include public and employers’ liability insurance, building, stock and contents cover, business interruptions cover, money (cash) cover and even glass cover.
- Pub insurance – Pub insurance can include an even wider range of risks, for example, for personal assaults at work.