Business Insurance Life Insurance

As any business owner will know; there's always an element of risk associated with running a successful company and this is why business insurance should top the list of priorities when it comes to securing the future of your business and giving you peace of mind.
In fact, depending on your circumstances, it could even be a legal necessity.

Why do I need business insurance?
It's vital that you have adequate cover as a business owner and a correctly tailored policy should cover you against the many risks and eventualities you'll face on a daily basis.  Even with the best forward planning and finest business acumen it's simply impossible to eliminate all risks and this is where business insurance comes in.

What types of business insurance are on offer?
Business insurance is designed to protect you against a variety of risks which range from claims arising as a result of the injury of an employee or member of the public, financial losses arising from mistakes or negligence, and right through to the loss of your business premises or equipment.
The 3 most common types of business insurance cover include: public liability, employers' liability and professional indemnity; each of which covers your business for a distinct set of risks and eventualities.
Let's take a look at what each of these covers:

Public Liability
Public liability insurance covers you against any claims which arise from the injury or damage caused to a 3rd party or client or their property (such as an expensive laptop or company car), if it's the result of a mistake made by your business.

Professional Indemnity
This covers you against the financial losses a client may suffer because you have given faulty advice or services which the client then takes you to court to recover.  This will also usually offer financial recompense for the legal costs you may incur as a result of this claim (read individual policy terms and conditions to confirm this)

Employers' Liability
Covers you against claims which may arise as a result of the injury of illness of an employee as a result of their work for you.  You'll usually find that this continues to offer you protection should the employee leave your employment and become ill further down the line (if you had a policy in place whilst they were in your employment).

Are there any legal requirements?
Yes.  If you have 1 or more members of staff in your employment, you are legally required to purchase employers' liability insurance.  If you fail to do so you could face significant fines for each day you are uninsured and you leave yourself open to financially damaging claims.
As mentioned above, claims can arise years after an employee finished working for you so you are legally obliged to retain records of your insurance.

It's also common for some clients to demand that your company has certain levels of cover in place in order for them to award you with a contract.  This is particularly the case when dealing with public sector organisations that will usually require public liability insurance of at least £10 million to be in place.

Lastly, depending on your profession, you may need to take out professional indemnity cover for you to be able to practice.  For example, an accountant or financial adviser would need to have this cover in place to protect from claims arising from faulty advice or a mistake they've made which sees the client losing money.  This can be a condition of a license to practice so it is worth double-checking before you carry out any work for a client.
It's important to remember that business insurance is crucial whatever the size of your company, as a well tailored policy can make sure your firm has the protection it needs, giving you peace of mind and protecting your financial security.