Do I need business insurance? What business insurance do I need? Asking these questions is the first step in ensuring that your business is prepared for any eventuality. We all know that accident happen, and things do go wrong, but it doesn’t have to ruin your business or cost you dearly.
As a business owner, you probably are well aware of the tools, equipment, tool, materials and technology that you need to run your business. But you may not be sure what types of business insurance you need and how much coverage is sufficient.
Do I need business insurance?
Yes, regardless of your business size, industry and type, you do need some form of business insurance. No matter the organisation, things can and do go wrong – things break, accidents happen, people sue. Your business’ success depends on your ability to remain resilient in the face of adversity.
In this article, we’ll describe some of the most common types of business insurance to help you identify what types of insurance are essential, good to have, or unnecessary for you.
What business insurance do I need?
When deciding on the types and levels of business insurance you need, you’ll need to think about the kind of work you do and the risks you are likely to encounter. For example:
- Do you have stock to insure?
- Do you have buildings to insure?
- To you have general business equipment and contents to insure?
- Is there a high chance of employees getting injured on the job?
- Could customers be injured?
- What are the chances of facing a compensation claim for negligence?
- How is your business affected by weather and climate conditions?
Business property insurance
If you own a building or any other business property such as computers, office equipment, inventory or tools, you’ll need to ensure that you are covered for any damage or losses due to theft, fire, vandalism, smoke damage etc.
Business interruption insurance
Downtime costs your business money. Business interruption insurance will compensate you for lost income when your business is unable to operate as normal. It will also cover the costs of any contents damaged or lost during the incident.
Contractors all-risk insurance
You can’t be in total control over what your third-party contractors are doing. Contractors All-Risk insurance provide umbrella cover for different contract work items.
A standard exclusion, this terrorism insurance can be added to extend property insurance and business interruption, even on all-risk policies.
Cyber and crime insurance
An SME Cyber Survey by Onepoll found that 31% of small businesses don’t currently insure against cyber and data risks. This is a vast oversight, as cybercrime is a very real threat to businesses of all sizes and cybercrime incidents can have a devastating impact on the business. Experts say that it’s not a case of if your company will be a victim of cybercrime, but when.
Liability insurance helps cover the cost of liability claims made against your business. Two of the most popular types of liability insurance are General Liability and Professional Liability. General liability insurance covers the costs of claims made against your business for property damage or bodily injury. Professional Liability Insurance helps cover the costs of claims that your business made a clerical error committed errors or omissions in the services and products you provided.
Workers’ Compensation Insurance
Employers’ liability or worker’s compensation insurance provides benefits – such as wage compensation and medical benefits – to any employees who become injured or ill on the job. It also covers work-related fatalities and will pay out benefits to his or her family.
Commercial Auto insurance
Like personal auto insurance, commercial auto insurance protects your business against the costs of auto accidents that you or your employees are involved in while on the job. Automobile insurance covers all road vehicles (cars, trucks, motorcycles etc.). Auto insurance also covers any liability that might arise from the collision.
Business income insurance
Similar to business helps replace lost income if you must temporarily shut down your business because of a covered incident.
Employers’ liability cover is a legal requirement for most businesses with staff, public liability insurance is important if you’re in contact with members of the public, and professional indemnity insurance is useful if your business offers advice.
Professional indemnity insurance
It’s often a contractual requirement that you insure yourself against claims of third parties for negligence and associated legal costs. Professional indemnity insurance is particularly important if your business offers professional services or gives advice – like medical professionals, accountants, and architects and others.
Business legal protection insurance
Business legal protection insurance covers any commercial legal expenses and provides protection against the potential costs of legal action brought by or against your business.
What if my business insurance needs change?
It’s natural for businesses to evolve as time goes on. When your business grows or changes, it’s important to change your insurance cover accordingly.
What business insurance package do I need?
Your business can save on overall insurance costs by combining insurance products. With a tailored insurance policy covering relevant risks, your business can benefit from lower costs and greater convenience.
Smarter Business will help you understand what business insurance is most important for your organisation
Smarter Business, together with the specialist business insurance team at James Hallam can empower your business with tailored business insurance policies and personalised risk advice to protect your business.
Get your no-obligation business insurance quote today.
About James Hallam
James Hallam is one of the UK’s leading independent brokers. The company makes it a priority to understand every detail of their clients’ businesses and work in partnership to provide a complete service. https://www.jameshallam.co.uk/