Types of Business Insurance
There are a number of different types of business insurance available, however, the major types of business insurance include: Public Liability Insurance, Professional Indemnity Insurance and Employers’ Liability Insurance.
Public Liability Insurance
This type of insurance protects a business financially should someone outside of the business file a claim regarding injury to their person or damage to their property. Although this is not a legal requirement, it is always a good idea to take out public liability insurance as the compensation payouts can be very expensive and it shows that you are a responsible enterprise.
Professional Indemnity Insurance
Professional indemnity insurance covers your business should one of your employees make a bad judgement or wrong decision which leads to your client incurring financial loss, such as an architect making an error in a design which consequently means that a customer’s structure needs to be remade. This means that if your business is in the consultancy sector, professional indemnity insurance is vital.
Employers’ Liability Insurance
Unlike public liability insurance and professional indemnity insurance, employers’ liability insurance is required by law in the UK. Indeed, all UK businesses must have an employers’ liability insurance policy which covers up to £5 million. Employers’ liability insurance covers the business financially should a member of staff become unwell or injured as a result of their employment.
In summary, the main types of business insurance include:
- Public Liability Insurance
- Professional Indemnity Insurance
- Employers’ Liability Insurance
Choosing the Best Business Insurance
There are a number of companies that offer business insurance packages that couple together the essential business insurances in one package. If you are just starting up your business, this option is more preferable as it can work out significantly cheaper and having all of your insurance policies under one roof can prove incredibly convenient,
As there are so many business insurance policies and insurance brokers in the UK, you may find it hard to know which one is best for you. In order to get the best deal, it is always a good idea to use an insurance comparison site. These sites can not only help you ascertain which insurance broker offers the best deal, but many comparison sites allow you to compare the different features of various insurance policies like maximum cover. The latter is especially important as the cheapest business insurance is not necessarily the best insurance.
When choosing your business insurance broker, be sure to check up on customer reviews. These can offer you an insight into the quality of the customer service the company provides.
Although many price-savvy business owners may be tempted to under estimate the risk associated with their business in order to secure a cheaper insurance rate, this is not a good idea as if something does go wrong the policy may not cover you. The most cost-effective way to reduce your business insurance is to simply reduce your risks: make sure that your employees are well trained in health and safety and have the right safety equipment.
- Take advantage of price comparison sites
- Check up on customer reviews
- Less risk = cheaper insurance