When you are a business owner, navigating the different types of insurance you need to legally support and run your business can be a minefield. Alongside all the other things that come with day-to-day business management, regularly reviewing and renewing business insurance can often be the last thing you want to do.
But, once you know more about the different types of insurance you may need, this can make choosing the right ones much easier. A lot of insurance is a legal requirement, but there are some others which only apply if you have certain employees, or want to offer employee perks. Let’s take a look at some of the types of business insurance you need.
Public Liability Insurance
Public liability insurance should be a key consideration if your business is regularly in contact with members of the public. This type of insurance can protect you against complications such as compensation claims for injury or damage, for example, by clients, customers or suppliers. A lot of shops such as cafes, bars, restaurants and hairdressers tend to take out this type of insurance. You may need to check your client’s contracts to see if you need a certain level of insurance.
Employer’s Liability Insurance
If you employ members of staff, then you will likely be legally required to have employer’s liability insurance in place. This type of insurance covers any compensation claims made by members of staff if they suffer a form of injury, illness or damage from their work. Some companies are exempt from the legislation, for example, businesses that only employ close family members or friends. To find out whether you are exempt from this, it’s recommended to check the Health and Safety Executive guidelines.
Business Contents Insurance
No matter if you work from home or have business premises that are separate, such as a pub, shop or office, then business contents insurance should be at the top of your list of priorities. If your contents are damaged, lost, destroyed or stolen, then this type of insurance coverage can pay the cost of replacements. Stock insurance is similar if you hold any stock, no matter the quantity, whether on your premises or elsewhere. This cover will replace if damaged, stolen or destroyed.
Credit Insurance
Unfortunately, you can never predict what is going to happen in the world of business. Credit insurance protects your business from unpaid invoices that may be caused by customer or client bankruptcy, payment defaults or other reasons so agreed with your insurer. Protecting your accounts from potential bankruptcy is just one of the benefits provided by credit insurance. Credit insurance not only indemnifies bad debt, but it can help to improve internal procedures and, as a result of this, help improve relationships with clients.
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