Business Insurance: Getting the Right Policy
Setting up and running a small business can be overwhelming in itself. Choosing the right business insurance cover can make it even more daunting and potentially threatening to its success.
A business must acquire the right protection in order to ensure trading runs as proficiently as possible. There are two things that a business must get right.
- The adequate insurance cover must be purchased for the specific business.
- The correct levels of cover need to be appropriate for individual employees and business needs.
Maggie Craig, the Association of British Insurers (ABI’s) acting Director General, said:
“In the current economic climate, it is even more important people are not under-insured or put off getting vital cover because they don’t understand how insurance works.”
Get the Right Business Insurance Cover for your needs
Protect your employees.
Employers’ liability insurance is a legal requirement if the company has any employees. It is important to protect staff against risk in the workplace as is reasonably possible but if someone was to be injured, this cover would provide any financial compensation that may be awarded. A business caught trading without employers’ liability insurance may lead to prosecution. £5 million is the minimum cover required, dependant on risk.
Protect your clients, consumers and visitors.
Public liability insurance is optional cover to a business. Nevertheless, it can be an extremely beneficial purchase. This is a policy designed to cover a business against any claims brought against them for injury or damage to third parties. It will cover the legal cost and damages that may be seen as a result of the business negligence. This will also include products liability cover, which will provide cover of if the product causes injury or damage. Cover varies from £1 million to £5 million dependant on risk.
Protect your advice.
If you give advice to your consumers, professional indemnity will be extremely useful. This would cover you for third party claims of professional error, omissions or neglect. Cover is available from £100,000 to £5 million.
Top Business Insurance Tip
When venturing into the world of business insurance, it is fundamental to seek advice. A professional will be able to guide you in the right direction and help you make the right choices.
Maggie Craig from ABI added:
“People with questions about their insurance should always talk to their insurer or an insurance broker to make sure they have the right level of cover for their needs.”
This business advice article was provided by Constructaquote.com
Constructaquote.com is an online insurance quote comparison service dedicated to UK small business, working with a panel of the UK’s leading insurance providers, from Aviva and Fortis to MMA and AXA.