Business Insurance Basics: What cover should you have?

Any professional entrepreneur starting a new business or renewing insurance should take some time out to find out how much cover they need.

Every business owner faces different, so safeguarding against the worst happening is a priority and in some cases, a legal necessity.

This quick guide highlights which type of insurance is best in different circumstances. As a minimum, your place of work and everyday equipment should be insured.

Professional indemnity insurance

Professional indemnity covers mistakes, like offering the wrong advice to a client.

If this happens and the client suffers financial loss as a result they can claim compensation.

Professional indemnity insurance can cover the legal costs and any pay out, so you are not left out of pocket.

This type of cover is of huge benefit to people such as health care professionals, financial advisers and solicitors, but is also suited to many other professions.

Public liability insurance

Public liability is a safeguard against claims from anyone injured or suffering damage to or loss of property because of your business. This covers like an office where you hold client meetings – but the cover extends to deliverymen and other business visitors.

Employer liability insurance

Anyone who employs someone, even if only temporarily or part time, must have employer’s liability insurance by law.

This provides cover if a worker suffers an illness or injury because of their job and can cover the cost of legal fees and compensation pay outs.

The level required will depend on the nature of your business – factories or construction sites generally have higher risks than offices, so pay more for employer liability insurance.

Property insurance

Businesses need buildings and contents cover just like a home.  This insurance covers not only your place of work but the equipment inside – like computers, mobile phones and desks.

This cover looks after damage to the building and contents in case of a fire, flood or burglary.

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