The Different Types of Business Insurance
In the UK there are many different types of Business Insurance. It’s because of this diversity that the options available can sometimes be confusing. So for a new business that has no staff or an existing enterprise with teams of employees it’s important to decide what level of insurance you must have and those that are advisable.
Here is a list of 16 different types of Business Insurance you might consider.
Employers’ Liability Insurance – The Employers’ Liability (Compulsory Insurance) Act 1969 requires that employees be covered against injuries whilst doing their job – Mandatory.
Motor vehicle insurance – Most business policies are comprehensive or third party, fire and theft. Legally you must, at least, insure your legal liability for injury to others and damage to their property – Mandatory. If you use private vehicles for business use, make sure the relevant policy accounts for this.
Professional indemnity insurance – Protects businesses against injury, loss, or damage, arising from their professional negligence or that of their employees. Depending on your industry certain profession MUST have insurance, these include; architects, accountants, solicitors, surveyors, insurance brokers and financial advisers.
All of the following types of Business Insurance are recommended.
Business travel insurance – Some employees travel extensively around the world. Cover against delays, loss of life and injury; equipment and money is recommended.
Fidelity guarantees – If you are worried about dishonest employees Fidelity Insurance covers against loss of cash or stock.
Key Man insurance – Some businesses would cease to function properly without certain individuals. It’s not uncommon to insure Directors and senior managers against the loss of income from death.
Premises insurance – Much like home insurance your business premises should be insured for the complete rebuilding cost.
There are two types standard and “all risks”. Talk to your broker about what level of cover you might need.
Contents cover – If you business holds any type of stock you might consider business contents insurance.
Plant and business equipment – Much like contents insurance, you can insure your machinery or business equipment.
Goods in transit cover – This is a popular insurance if you are looking to dispatch high net worth items. The post office always asks the value of your item being sent. Goods in transit cover operates in the same way.
Engineering insurance – Engineering insurance covers against electrical or mechanical breakdown.
Business interruption insurance – The riots in London in 2011 resulted in claims for disruptions to your business. Claims for loss of income and expenses would be likely.
Public liability insurance – This is a very common policy that covers your business from damages to members of the public, either for death, injury or property damage.
Product liability insurance – If you sell a product you need to consider carefully whether that product may harm an individual due to defects or negligence in manufacture. If so, you need to talk through the risk with your legal adviser.
Pollution risk insurance – Pollution is taken very seriously by the Environment Agency. If your business is caught polluting the environment you could be liable and fined and forced to pay to clean it up.
Directors and officers insurance – Company directors and officers have specific duties and responsibilities, for which they can be held responsible. Directors and officers insurance provides cover for compensation and legal costs, if they are found to have inadvertently acted outside their terms of reference.
There are differences in the legislation depending on which part of the country you live in. If you live in Scotland or Northern Ireland you should check local laws.