Protect Your Livelihood with Business Insurance
While losses always adversely affect companies, large corporations can sometimes shrug them off as the cost of doing business. However, a loss for a small business can be devastating and leave it struggling to keep its doors open. Fortunately, business insurance can help protect your company against losses due to employee negligence, accidents and theft of your company’s property.
Business Insurance Policies
There are several types of business insurance that can help keep your company afloat if you incur losses. These policies include:
- Employers’ Liability Insurance
- Professional Indemnity Insurance
- Business Interruption Insurance
- Property Insurance
Employers’ Liability Insurance
An employers’ liability policy helps protect your company by helping to pay employees’ compensation if they are injured or become ill because of the work they are doing. You are required to have this type of insurance if you have employees and it must cover you for at least five million pounds. Your business can be fined £1,000 for not displaying an EL certificate, and £2,500 per day for not having EL insurance.
Professional Indemnity Insurance
If your business centres on advising people legally or financially, then you need to have a professional indemnity policy to protect your business against potential lawsuits. If you or an employee gives someone bad advice or makes a mistake on an account, then a PI policy will help compensate clients for their losses or damages resulting from your company’s mistakes. This type of insurance usually covers lawyers, accountants, architects, and financial planners.
Business Interruption Insurance
This insurance will help cover your losses if you cannot conduct business as usual due to an unforeseen event. For instance, if your business is damaged by fire, flood, or a storm and cannot open its doors, then you will be covered for your losses. The policy may also cover losses caused by equipment breaking down, people not being able to get to your business in case of road construction, or damages at a suppliers’ or customers’ location that affects your company.
Commercial Property Insurance
This type of insurance policy can cover the costs of repairs for your building if damaged by fire, floods, storms, or vandalism and it can cover the costs of repairing or replacing equipment that is damaged or stolen. This type of insurance is broken down into building insurance and contents insurance. While this insurance is not mandatory, if you are purchasing your building most mortgage companies will want you to carry building insurance to protect their investment.
The type of insurance that you will need will depend on the type of business that you own. Even if you’re the only employee, you may want to ask an insurance agent about which policies can help protect you and your company from losses and liability.