What Insurance Do I Need For My Business?
Owning and running a business comes with a unique set of risks and uncertainties. As great as your business plan, services, or products may be, it’s crucial to protect your investments and mitigate against any potential losses. The simple solution then to this is to take out commercial insurance coverage. However, even this isn’t so simple. There are many types of commercial or business insurance available, and the type of insurance suitable for each business will vary. We’ve rounded up the more common types of insurance that your business should consider.
Types Of Commercial Insurance
Business insurance policies are not a one-size-fits-all solution. From property damage to legal liability, each type of coverage protects against different risks. Narrowing down which risks are applicable to your business or industry will help you decide on which coverage your business needs.
Public Liability Insurance
Public liability insurance is important for businesses that interact with the public. This type of commercial liability insurance covers the business in case a claim is made against them by a third party due to negligent acts, resulting in injury or damage to property.
Without public liability insurance, a business may face legal and financial issues that could potentially ruin the business. However, businesses with public liability coverage can rest assured that they have legal support and financial protection if a compensation claim is made against them.
Businesses that may require public liability insurance include those that operate in industries such as construction, hospitality, retail, and health services. These industries regularly interact with the public and therefore have a higher risk of exposure to potential claims.
Professional Indemnity Insurance
Professional indemnity insurance protects businesses from legal action due to work-related issues. This is particularly important for businesses that offer professional services as they are at risk of making errors or giving advice that could lead to mistakes. Suitable coverage will help businesses cover legal costs and compensation payments in the event of a claim. Healthcare providers, architects, and financial advisors are just a few examples of professions that commonly use this kind of commercial insurance.
Product Liability Insurance
Product liability insurance is designed to protect businesses that sell, manufacture, or distribute products. More specifically, it provides coverage for any liability that may arise as a result of harm caused by a product that the business supplies. With this in mind, a business selling goods considered as dangerous, harmful, or unsafe should take out a product liability insurance policy, as they’re most likely to be held liable for damages or injuries caused by their products.
Property Damage Insurance
Property damage insurance, or commercial property insurance, is vital for most businesses. It offers protection for physical assets like inventory and equipment, as well as the building that the business operates from. Damages caused by unforeseeable events such as fires and storms can affect commercial property, resulting in significant losses that can negatively impact business operations without a suitable policy in place. For example, if a fire occurs in the business premises, property damage insurance can cover the costs of repairing or rebuilding the building or replacing damaged inventory or equipment.
Business Interruptions Insurance
Business interruption insurance is another vital type of commercial insurance that most businesses should consider. It protects against financial losses that can occur when a business is forced to suspend its operations due to an unforeseen event like a natural disaster or fire. This can help a business recover lost profits, pay ongoing expenses, and cover additional costs needed to keep the business running. Coverage options vary but typically include loss of income due to suspended operations, additional expenses needed to continue operations from a temporary location, and cleanup and repair expenses.
Business Contents Insurance
Business contents insurance is designed to protect the contents of a business, including fixtures and fittings, equipment and furniture, and even the personal belongings of employees. This can be especially important for businesses needing to replace or repair essential items, such as computers or machinery. Anything borrowed or hired can also be covered under this type of commercial insurance policy. However, it's important to have a dedicated retail-based insurance policy for retail stock and other specialised items.
Employer’s Liability Insurance
Employer’s liability insurance is a legal requirement in the UK for all businesses with employees. A policy will provide protection from potential lawsuits, including those from employees who claim that the employer's negligence or failure to provide a safe working environment resulted in any injuries. This will cover legal defence costs, settlements, and judgments awarded to the employees in cases where the business is found responsible.
Business Insurance From Higos
At Higos, we’re specialists in providing bespoke, tailored commercial insurance for businesses of all types and sizes. Our chartered status allows us to work closely with a large number of insurance providers to ensure we’re finding you the most appropriate policies. We’ll take the time to discuss your business in detail, understanding the unique risks you face, before suggesting what coverage would work best.
If you’d like to speak with our commercial insurance team, get in touch today. We’re happy to help in any way we can and answer any questions on business insurance you may have. For commercial liability insurance, it has to be Higos.