Business Insurance

We’re all aware of the importance of getting the right cover for our cars and homes, but it is also important to ensure you have the right cover when it comes to your business.  Likewise it’s also important to choose your cover carefully as this can lead to considerable savings, by only ensuring that you have the cover you need.

Business insurance can be a minefield, particularly as the amount of cover will vary dependent upon the size and type of business you run; however, there are three main areas of business insurance which are critical to most business, they are:

• Public liability insurance – There are few businesses around who couldn’t justify having some form of public liability cover.  This policy will provide cover If your business is responsible for member of the public or third party sustaining an injury, or for any damage or destruction of their property, public liability insurance would provide cover for any costs such as compensation payments or the actual cost of repairing damage.  Public liability insurance can also help cover the costs of legal expenses incurred in defending the case in court.

• Employers liability – It is compulsory for businesses with one or more staff to have employers liability cover as this helps to protect employees against any injury or illness caused in the workplace.  Employers liability insurance provides cover for the costs of compensation along with any legal fees which may be incurred should the case go to court.

• Professional indemnity insurance – Although not every business needs this element of cover, examples of business that do require some form of cover are the likes of accountants, architects, IT consultants and personal trainers.  Basically anyone who provides advice or gives a service to another business that could cause them to suffer a loss.  In these circumstances, professional indemnity insurance would cover the cost of any claims made against your business for compensation.  It can also cover the legal expenses involved with the case.

Of course there are many more areas of cover that apply to various types of businesses, such as tool and plant hire cover for manual works, and office equipment cover for clerical businesses, and not forgetting cover for business interruption or any events which may see your business temporally out of action.

2009-07-10 09:16:57 © Moneyextra.com