Insurance For Your Business
Having adequate business insurance is essential, no matter how robust your security or safety processes. Some insurances are compulsory whilst others are optional.
Almost all employers must have employers’ liability cover, which provides protection against claims for accidents or illnesses employees suffer as a result of work.
Professional indemnity insurance – which provides protection against legal action taken by those who believe they’ve been given bad advice – is also compulsory for some businesses in the legal, accountancy and financial service sectors.
Most other types of insurance policy are optional. Although they provide another overhead, they can help you to survive should your small business be faced with an unforeseen crisis.
Employers’ Liability Insurance
You are required by law to take out this type of cover if you have any employees. It provides cover for claims brought against you by workers who have been hurt or become ill as a result of working for you. It is your duty to display your certificate of insurance or provide access to an electronic copy where employees can easily access it.
Public Liability Insurance
It’s not a legal requirement to have this kind of insurance but it is advisable as it protects you if claims are brought against you for damages and legal costs resulting from injury, death or damage to property caused to members of the public by any of your business activities.
Professional Indemnity Insurance
PII covers claims arising from your negligence or bad advice in work you have done for a client.
Is It Illegal Not To Have Business Insurance?
If you employ people, you are legally obliged to take out Employers’ Liability Insurance. Most businesses are not required to take out business insurance under law – but this certainly doesn’t mean you should not do it anyway. Business insurance helps you to maintain a stable, safe business. Just as importantly, it can be a prerequisite for securing contracts. Many clients will require you to have certain covers, and many trade bodies will demand that their members are properly insured.
Preventing An Insurance Claim
While you can insure against many risks, it’s better to prevent problems arising in the first place. Some of the key areas to examine include your health and safety policies and how you manage your environmental responsibilities.