By Simon Ball, CEO of Coverzones
Let’s be honest. Business insurance is probably not at the top of the “to do” list for time pressed business owners and managers. Many of them would favour bypassing this time-consuming activity in order to prioritise more pressing issues. However, in this climate of uncertainty it is imperative that businesses don’t cut their insurance to help improve their finances. Not having the appropriate insurance cover in place could expose a business to unnecessary risk or, in some cases, leave it operating illegally.
What type of cover do you need?
There are numerous policies available and a couple are even mandatory. One such example is Employers’ Liability insurance (EL). The law requires that all U.K. businesses with one or more staff are protected against claims arising from injury or illness sustained by their employees whilst at work. It is also worth noting that temporary workers and sub-contractors must also be covered under this type of policy. A business risks a fine of £2,500 for each day it is not able to produce evidence of suitable insurance.
The law also requires all motor vehicles in the UK to be insured and commercial vehicles are no exception. A personal policy will only provide cover when commuting to and from work. Businesses that make use of a vehicle for commercial purposes will need a specialist insurance policy to ensure they are fully protected against claims arising from unfortunate accidents.
Beyond EL and commercial motor insurance, two other types of business cover worth considering are public liability insurance and professional indemnity insurance. Public liability insurance will protect a business from any claims arising as a result of injuries sustained to members of the public. This includes death, bodily injury and damage to property. Professional indemnity insurance is useful cover for all advice-based businesses, as it covers the costs of mistakes or negligence; claims which can cripple both a company’s reputation and finances.
Of course every business has its own unique set of individual requirements which influences what type of insurance policy it needs. For example, a home based business will need to ensure that the house and contents insurance policy also extends to cover a home business. Alternatively, if a business relies on stock, tools or electronic equipment, then a policy which can offer protection should anything happen to these essential business items is required.
How do you get the right level of cover?
Make sure to verify exactly what is covered by a policy before purchasing and shop around for the best deal. There is also plenty of information and assistance available online to get you started. If in any doubt about which insurance policy a business needs, or if you require clarification around legal and regulatory requirements, then seek out the advice of a qualified professional.
Coverzones offers products tailored to over 4000 professions. This includes packages such as tradesman insurance and office insurance which combine a number of product types in one single policy. Less experienced shoppers also benefit from a ‘Help Me Choose’ facility. By answering a set of basic questions about their business they can then view a set of product recommendations tailored to their business needs.
Top tips for getting the right cover at the right price
1.Don’t take the risk of cutting back on essential insurance, particularly during tough economic times. It is vital to protect you and your business so cut costs not cover.
2.Make a thorough assessment of the risks affecting your business and ensure you are appropriately covered.
3.Always check that you are getting the best value for money from your current policies; it’s easy to renew but probably cheaper to shop around.