Getting the right business insurance can be difficult, but having the best possible cover in place can be vital for your business’s future. There are many different types of insurance policies a business may need and in some cases you may require multiple policies to cover all aspects of your business. To help you get business insurance you need, here is Coversures’ guide to getting the business insurance that’s right for you.
Business Insurance Types
The type of Insurance you need will obviously depend on the nature of your trade, the two most popular options are Packaged Retail Insurance or for specialist commercial cases, Commercial Combined Insurance. Both of these policies group together various protections into a single insurance cover, making your insurance much easier to look after. You may also need to consider liability insurance and directors’ and officers’ insurance. These policies will protect both your business and key people if action against them arises from the business activities.
Packaged Retail Insurance
Packaged retail insurance can be great for shops. With this type of insurance, you can combine various types of cover under a single premium, meaning your building, contents and stock are covered. You will need to break down the value of your stock and/or contents depending on the type of business you run; for example, stock, such as tobacco and wines, are seen as higher risk products. A benefit of packaged retail insurance is that some areas of cover will be automatically included, such as shop front glass.
Commercial Combined Insurance
Commercial combined insurance allows for more complex businesses, such as warehouses, factories and wholesalers, to have the correct business insurance protection under one policy. These specialist risks may require a survey to be undertaken to allow the insurance company to have a better understanding of the business’s insurance needs. This could include an assessment of multiple aspects of the business, including fire hazards and health and safety risks and the properties’ contents may also need to be valued. These assessments make sure your business is sufficiently covered and avoid the risk of underinsurance. Being underinsured could result in significant financial losses to your business in the event of a claim.
Liability insurance can protect your business against legal action, so it makes sense to keep yourself protected in the case of a claim from either a member of the public or an employee.
There are two main types of liability insurance; the first is public liability insurance. This covers your business against any injuries a member of public may suffer or damage to their property as a result of your business’s activities. A few examples of possible claims could be a customer or a supplier who is injured after slipping on wet floor whilst on your premises, or one of your employees damaging a property whilst evaluating a job.
The other main type of liability insurance you need is employers’ liability insurance. This type of liability insurance is a legal requirement in the UK and you must have cover of at least £5 million, but will typically be £10 million. This type of insurance covers any injury an employee may receive while working for your business and can include financial support to the employee in the event of an injury.
Directors’ and Officers’ Insurance
Directors’ and officers’ insurance offers your business protection if your key people find themselves in legal disputes. This insurance will cover these key members of your business from financial loss and from legal actions that are brought against them because of their business activities.
While traditionally only larger businesses have had this type of insurance, increasingly smaller businesses are also protecting themselves in the event of legal action.
If your business operates, or makes use of any vehicles, you may be required to cover a vehicle or even a fleet of vehicles. You might need to insure vans, cars, trucks or even special type vehicles such as tractors. These can all be insured either separately, on a single vehicle policy or a fleet insurance policy if you have two or more vehicles of any type. For any business that is required to move stock around or deliver items you may also like to consider goods in transit insurance to protect your cargo.
When your business owns, or leases a car you will need to cover this with business car insurance. Business car insurance can be seen as a higher risk than private car insurance, mainly due to the increase in miles and time on the road when using a business vehicle, meaning different insurance is often required.
Fleet insurance allows you to cover two or more vehicles on a single policy, this can include a range of vehicles such as trucks, vans, cars and special types such as cranes and bulldozers.
Fleet insurance can be a great way to insure multiple vehicles as it has the advantage of putting all of your vehicles on a single policy, which will mean less work for yourself thanks to the single renewal date and premium. Depending on the claims history of your fleet, fleet insurance can save you money.
Goods In Transit Insurance
If your business involves moving stock around, either by moving it to another outlet or delivering products to a customer, you will want to have your stock protected in case of damage or theft. Goods in transit insurance allows your stock to be covered while on the move and can also include personal effects left within the vehicle.