A business insurance is something every new business owner should budget for, right from the start. A commercial insurance provider can provide you the best and the most suitable coverage for your business. Your business gives you the freedom to save more, produce more, and make the future brighter for the next generation, so it is necessary to have the right commercial insurance for your business. Owners of agribusinesses should also take out a rural insurance to protect their business and investments.
Working from Home
If you are working from home check that your household buildings and contents insurance still covers you. Give the company a call and explain that you are now using your computer for work. Depending on the amount and type of work that you do they may still be happy to cover you if you are using a limited part of the house, and do not have business visitors – but check your own policy. However, you may get better and more appropriate cover from a business policy. If you have clients coming to your house you will need public liability insurance, to protect you if, for example, someone fell while in your house. A business insurance company may also be able to provide you with coverage if someone was injured while using one of your products.
Working from Business Premises
Public liability insurance is a basic requirement once you have business premises. You will also need buildings and contents insurance specifically for your business. If you take out a business property policy, you can get insurance for your own equipment, fixtures and fittings, plus cover for leased equipment and client’s property.
You will also need to have public liability insurance if clients come to your premises. This covers legal fees, costs and expenses and damages if someone is injured while in your office. Check out this site and learn more on How to Reduce Business Insurance Costs with Fewer Liability Claims.
If you work from a shared office or your own business premises you may need different types of insurance policy. With a shared office, check with the person or organization you have an agreement with about what is covered by their insurance.
You may need to get extra insurance for equipment. If you have a computer that is largely for home use, it will probably still be covered by your home contents insurance, but if you buy an industrial sewing machine, say, specifically for business it is unlikely that this will be covered. Some insurance companies provide specific “working from home” policies which cover your need for domestic buildings and contents insurance, as well as business contents, employers liability, pubic liability, products liability and legal expenses.
If you use your car to transport business items, to a craft fair, for example, check whether this is covered by your motor insurance. You may simply need to let them know that you are doing this.
Insurance for Professionals
People providing services may need professional indemnity (PI) insurance. This type of policy protects you if you have made mistakes or have been negligent is some of the services you provide to clients. It will cover you for legal costs and compensation. You need to arrange cover before you start work, and need to ensure that your cover is continuous, so you have cover for when the problem occurred, and when the client actually makes the claim, which may be years down the line. In some professions, such as accountancy, taking out PI cover is a legal requirement.
If you have people working for you, you will need employer’s insurance. This protects your business against claims from employees for accidents and sickness, for example.
If You Own a Company
Limited company directors may want Director’s Insurance, which protects against being sued for negligence, for example. Understanding business insurance is important for business owners to provide full protection of the business investment without paying more than necessary.
Many policies include legal expenses insurance which covers court costs and legal fees.
Insurance for staff
If you have staff, you also need employer’s liability compulsory insurance to meet the costs of compensation and legal fees for employees who are injured or made ill at work through the fault of the employer. You do not need this insurance if you are the only employee of a company, nor if you are a self employed sole trader.
Professional organizations such as the Federation of Small Businesses can help you find the right cover, and may have links with insurance companies. If you are looking for an insurance company, check that they are a member of the Association of British Insurers.
Always check with your own insurance company about your circumstances. Information given here is to illustrate the issues only.