Do You Have the Right Business Insurance Cover for Your Small Business?

Is your business protected by the right insurance policies? Many small business owners may feel confident they know what insurance to buy, but are they adequately covered against all potential losses?

There are lots of different insurance policies available for small businesses, some of which can be industry specific. Here is a quick look at some of the types of business insurance you might want to consider.

Public Liability Insurance

Public liability insurance is designed to protect you against any claims from people who may suffer an injury, be involved in an accident or have property that was damaged as a result of your business. Your policy should cover you for the cost of compensation and any legal costs that arise from accidents such as these.

Professional Indemnity Insurance

If you offer professional advice in your business, you may be required to have professional indemnity insurance. In the event that a client loses money as a result of your advice your professional indemnity policy may cover your compensation and legal costs arising from a claim against you.

Employer’s Liability Insurance

If you employ staff in your business, you are required by law to have employer’s liability insurance. The ruling applies to all employees, even if you hire them on a part-time or short-term basis. Employer’s liability is designed to provide coverage for employees who fall sick or are involved in an accident while working for you. The minimum amount of coverage required is set at £5,000,000. However, there are some insurers willing to offer automatic coverage up to £10,000,000.

Property Insurance

Property insurance is designed to cover the loss or damage of your tools or business equipment. For example, a financial advisor operating a consultancy business would rely heavily on computers and IT equipment, while a carpenter would rely heavily on his tools of trade.

It’s important to purchase sufficient coverage to adequately replace all your business equipment or stock in the event that it’s damaged or stolen. Remember to account for office equipment, furniture, tools and business vehicles as well as covering your business building or premises.

Money Cover Policy

If your business handles a lot of cash, you may benefit from a money cover policy. Money cover insurance can provide protection against loss or theft of cash from your business. As an example, if your business takings were stolen from your safe overnight while the premises were unoccupied, or while you’re in transit from your premises to the bank, your policy could cover your losses. Likewise, if your business offers a cash dispensing machine (ATM), your policy may cover you for the amount of cash stored in the machine.

Business Interruption Insurance

If your business premises are destroyed or damaged it’s likely you will lose money while repairs or replacements are organised. A business interruption insurance policy can cover some of the money your business will lose if you’re unable to work as a result of business property being damaged or destroyed.

Income Protection Insurance

Many small business owners purchase income protection insurance to help protect their incomes. Income protection coverage is designed to pay a replacement income in the event that you’re unable to work as a result of an injury or illness.

There are many different insurance policies available that can help protect your business. No matter how big or small your business might be, it’s important you choose the right business insurance to suit your individual needs.

Find a suitable small business insurance policy now.