Insurance for businesses is extremely important. Did you know that 75% of U.S. businesses are underinsured? Even more frightening is that 35% of small businesses having no insurance at all.
Covering your assets, removing risks such as claims and looking after your staff is vital. But what are the most popular types of business insurance?
What insurance is best when starting a business?
When first starting a company, you should consider what exactly needs to be covered at this moment in time, as well as further down the line.
You likely have no employees, so you don’t need to think about employers’ liability insurance. However, if you are aiming to expand in the near future, this may be something you will probably need to add to your policy, but this can always be added later on.
Employers’ Liability Insurance
If you have staff at your business, you will be legally required to have an employers’ liability insurance policy. This will cover compensation claims by members of staff for reasons such as suffering illness, injury or damage through their work.
Public Liability Insurance
For businesses that come into contact with members of the public, no matter if it is at your premises or elsewhere, public liability insurance should be considered. This will protect your business from compensation claims for damage or injury by customers, suppliers, or others.
Business Buildings Insurance
Businesses that are run from home, or other premises including offices, shops or pubs should make business buildings insurance a priority when selecting your policy. Properties that are rented may or may not already have this included in the contract, so it is best to check with the landlord to see if it needs to be added.
Product Liability Insurance
If a customer suffers injury or damage due to a faulty product that your business provides, then product liability insurance would protect you from these claims. Businesses can often be held liable for damage from products that weren’t manufactured by themselves.
Professional Indemnity Insurance
For businesses that offer a professional service or advice to other businesses, professional indemnity insurance is important. This also includes businesses that deal with intellectual property or important client data.
If there is a mistake made, resulting in a client losing money, you may be sued by the client. This is where your policy comes in, covering legal costs and compensation claims. For some regulators and professional bodies, such as accountants, architects and surveyors, it is required to have professional indemnity insurance.
Business Contents Insurance
Unfortunately, sometimes business equipment such as tools and machinery can be lost, stolen, damaged or even destroyed. To protect the contents of your business premises, adding this coverage to your policy will pay for the cost of any repairs or replacements that are required.
Business Legal Protection Insurance
Also known as business legal expenses insurance, this policy will cover commercial legal expenses, giving your company protection against the possible costs of legal action brought against your business.