The world of business is a vast one, with endless diversity and a myriad of different sectors. However, one of the aspects which links all forms of business is the need to have adequate business insurance in place. The cost of business insurance, though, will vary greatly from firm to firm and will depend on a wide range of criteria.
Type & size of business
How big your business is and what they will have an impact on how much you pay for business insurance. Insurers assess the level of risk when working out how much cover will cost and will identify your risk level based on your line of work and how many people work in your company. Firms in the construction industry, where workers are dealing with large machinery, hazardous materials and potentially unsafe building sites on a daily basis, will present a much higher level of risk than companies in which the majority of the workforce operates in offices.
The size of your workforce can also play a part in the assessing insurance costs as having more people covered by a policy will mean greater premiums.
The kind & level of cover
As with anything in business, you get what you pay for. A business insurance policy will need to include a number of key forms of cover and these will all have an impact on the cost your insurance:
An essential component of business insurance, this will protect you if a client or member of the public makes a claim against your business if they have been injured, fallen ill or had their property damaged as a result of your company’s operations.
Regardless of if you employ one or 100 (or more, of course), you are required by law to have employer’s liability insurance. The cost of this cover is pretty small in relation to the fines you can incur for falling to have it in place.
Professional indemnity insurance
The quality of your company’s work can be their calling card, but if a customer is unhappy with how a service has been delivered and have suffered some form of loss or damage as a result, they could make a claim against you.
Other forms of insurance
As well as the main forms of liability cover, your business may need to take out other forms of insurance such as buildings and contents, cover for office equipment and machinery and insurance for cash and vehicles used by your company.