Business insurance can be complex, but we’d like to explain it to you in a very straightforward, simple and quick way.
Some businesses may have a few different requirements for insurance. The essentials would be covering your business premises, its contents, public and employers liability. Those are just a few of the essentials to think about. Some businesses may need higher forms of business insurance due to different legal requirements, risk factors and niche businesses.
A full range of policies
Although only employers’ liability insurance is a legal requirement if you have one or more employees, business insurance is integral to creating a stable, safe business. The presence of business insurance can provide the reassurance required to secure contracts and join trade bodies.
- Public liability insurance – protects your business from claims arising from individuals outside of your employment who are injured on your property or as a result of your work.
- Professional indemnity insurance – provides cover for claims which arise from negligent work or poor advice given to a client.
- Employers’ liability insurance – a legal requirement for any business with one or more employee. Provides protection against claims arising from your responsibility to ensure the wellbeing of employees.
- Business Premises Insurance – This form of business insurance protects your commercial premises against elements such as flooding, storm damage, electrical fires etc. Accidental damage can be included in these packages as well.
- Business Contents Insurance – This isn’t a legal requirement but is definitely advisable to any business that may have expensive contents such as computers and technical equipment.
Note: Business premises insurance is generally paid by the owner of the premises. If you’re renting a business premises you really just need contents insurance.
How is your business insurance calculated?
Some businesses are going to pay higher rates of business insurance based on the nature of services or products offered. Ones with higher risk to employees or to the public are going to pay more eventually. Here’s a list of some factors that might influence the business insurance premium:
- The type of business that is operating
- Revenue – more money will mean more risk.
- How many employees are under the care of the business and the nature of their work
- Claim history – Have you had many claims in the past? If yes. You probably will pay more.
- Do you believe in health and safety? If you get your staff trained and pass safety inspections you’ll probably receive a lower premium.
The above examples of business insurance are just some areas I’ve researched and found to effect insurance. You should seek advice from a professional insurance broker before you proceed with any business plan. This is just my summary of business insurance and it’s not my field of expertise.