Any
new business legally imposes you to have some type of cover
be it motor insurance or employers' liability insurance if
you have staff.
Insuring your premises often proves to be a sensible business
decision. Insurance of fixtures, fittings, equipment and
stock against disasters such as fire, flood and theft which
could prove highly damaging to your operations can be helpful
in bad times. Some businesses may impose a legal liability
on you to buy life and health covers for staff.
Some of the compulsory insurances required by new businesses
include employers' liability insurance, motor insurance if
your business uses vehicles on the road, professional indemnity
insurance for businesses in professions such as law and accountancy
etc.
There are few other types of insurance that your business
may require such as buildings and contents insurance, equipment
insurance, key man insurance and health insurance for the
owner-manager, business continuity or business interruption
insurance, public liability insurance, product liability
insurance, goods in transit insurance, legal expenses insurance,
money policies etc.
Since there is such a vast range of options that you can
go for you should monitor your level of insurance cover as
your business develops. An annual review to check how your
needs have changed may let you weigh up the cost of the premiums
against the level of risk you're running.
Independent
insurance broker familiar with your business sector can
guide you in selecting the right level of cover
for your needs. Your broker can even save your money by telling
you which risks pose the greatest threat and let you find
the best deal.
Lets take a closer look at some types of business insurance
that are a legal requirement:
Employers'
liability insurance: this insurance protects your business
against claims from employees for accidents
or sickness which they may suffer due to working for you.
This insurance is necessary even if you own the company and
you are the only employee.
Motor
insurance: At least a third-party motor insurance is required
if your company uses motor
vehicles on the road.
It covers your legal responsibility for personal injury to
someone else or damage to property. You can also opt for
purchase comprehensive insurance to cover damage to or theft
of your own vehicles. If your employees are using their own
vehicles ensure that insurance for all such vehicles has
been extended to include business use.
Professional indemnity insurance: Certain professions -
such as the law, accountancy and financial services - are
required to take out professional indemnity insurance. Your
trade association or professional body can give you proper
advice to decide whether you really need a professional indemnity
cover.
Insure against common business risks:
There is no business which is immune to threats from fire,
theft and equipment failure to unpaid bills, loss of cash
or cheques and damage to goods in transit.
All-risks buildings and contents insurance cover a range
of risks, such as fire, flood and theft. The level of cover
you opt for your premises is likely to depend on whether
you own or lease your premises.
The cost of replacing an equipment can be covered taking
wear and tear into account. There are policies available
to protect machinery and IT equipment against breakdown.
Compensation for costs incurred and loss of profits due
to disasters such as fire or flood or an IT system failure
can be obtained under Business interruption or business continuity
insurance.
The value of goods lost or damaged when in your vehicle
or sent by a carrier can be recovered by Goods in transit
cover.
Credit
insurance covers the risk of debtors becoming insolvent.
However, you will have to bear part of the risk yourself.
Legal expenses insurance covers the costs (such as solicitors'
fees and court costs) of defending a legal action.
Cash, cheques and stamps are taken care of by Money policies
cover. Depending on whether money is on your premises, in
safes or transit different levels of cover may apply.
If
you or your employees travel abroad on business then
you will need to have Travel insurance.
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