There is a range of different types of insurance available to businesses and they all cover different risks. The main types of insurance are:
- Property insurance
- Liability insurance
- Personal accident and sickness insurance
- Legal expenses insurance
This type of insurance covers you if your business property is accidentally damaged or stolen.
If you take your property away from your business premises, you should check whether it is covered. You should also check whether there are any policy conditions that you need to comply with. Some property insurance policies will insist on minimum security levels are your business premises or will not cover property left in vehicles overnight, for instance.
You must insure for the full value of your property. It can be surprising to find out how much it is worth when you add up the values of all of your property and if you are underinsured in the event of a claim, you could be penalised.
Liability insurance covers you if a compensation claim is made against you. It also covers and associated costs and expenses, including legal fees, and your liability insurance provider will help you handle any claims.
Employer’s liability insurance covers compensation claims made by your employees and it’s a legal requirement if you employ anyone. Public liability insurance is similar but covers claims made by people who aren’t employed by you. Public liability insurance isn’t a legal requirement but you might be contractually required to have it. Public liability insurance usually comes with products liability insurance which covers compensation claims arising as a result of a defect in something that you have sold or supplied.
Personal accident & sickness insurance
This type of insurance protects your income if you cannot work due to an injury or an illness. It means you don’t have to worry about how you will be able to cover your monthly outgoings and can concentrate on your recovery instead.
A weekly benefit is paid if you are off work on a temporary basis. If you will be unable to work permanently due to your illness or injury, a lump sum is payable instead.
Legal expenses insurance
This covers your legal expenses if you become involved in legal action. As well as covering the legal costs, your legal expenses insurer will also help you deal with the legal action to ensure the best possible outcome.