01 Aug PROTECTING YOUR BUSINESS WITH THE RIGHT INSURANCE.
Protecting your business with the right Insurance.
Whether you run a small business, a large multinational company or are self-employed, business insurance can help to protect you and your company against unexpected costs.Making sure that you and your business is protected, giving you peace of mind but also protection.
Why do I need business insurance?
Business insurance can help protect business owners and independent professionals against everyday risks, such as mistakes, stock or premises damage, and legal costs (known as Liability insurance). Some policies can even protect against business interruption and supply chain breakdown.
This protection means that, should your business suffer an unforeseen knockback, you can feel confident that you and your employees are protected. Meanwhile, your insurer can help to get your business back up and running again quickly.
Business insurance can also offer credibility to your business, demonstrating to prospective customers and potential employees that you are trustworthy to do business with.
What type of business insurance do I need?
Some types of business insurance are required by law:
- if you are an employer you are legally obliged to have employers’ liability insurance to cover the cost of compensating employees who are injured or become ill through work
- if your business uses vehicles you are legally obliged to have commercial motor insurance
- Some professions are required to have professional indemnity insurance by their professional bodies or regulators
Other types of business insurance are optional, such as:
- Commercial property insurance, which covers the cost of repairing or rebuilding your business premises, or replacing your stock or equipment.
- Liability insurance, which covers the cost of compensation claims following fault or negligence brought against you or your business by clients, customers, shareholders, investors, or members of the public.
- Cyber insurance, which covers you for losses relating to damage to, or loss of information from, IT systems and networks.
Types of liability insurance include:
- Public liability insurance covers the cost of claims made by members of the public for incidents that occur in connection with your business activities.
- personal injuries
- loss of or damage to property
- incidents that occur on your business premises
- incidents that take place off-site, at events or activities organised by your company
- you own business premises that members of the public, customers or clients visit
- your business organises off-site events or activities that are attended by members of the public
- you run a business from your home and people visit your home for professional purposes
- people visiting your business
- people taking part in events or activities you have organised
- people watching events or activities you have organised
- Product liability insurance covers the cost of compensating anyone who is injured by a faulty product that your business designs, manufactures or supplies.
- your business’s name is on the product
- your business repairs, refurbishes or changes a product
- you imported the product from outside the European Union
- you cannot identify the product’s manufacturer, or the manufacturer has gone out of business
- personal injuries caused by your faulty product
- loss of or damage to property caused by your faulty product
- unforeseeable circumstances such as product faults that your quality control system could not identify
- Professional indemnity insurance covers the cost of compensating clients for loss or damage resulting from negligent services or advice provided by a business or an individual.
- Employers’ liability insurance covers the cost of compensating employees who are injured at or become ill through work.
- Directors’ and officers’ liability insurance – also known as D&O insurance – covers the cost of compensation claims made against your business’s directors and key managers (officers) for alleged wrongful acts.
Public liability insurance covers the cost of compensation for:
Policies vary from insurer to insurer, but most public liability policies cover you for:
You should consider public liability insurance if:
Public liability insurance covers anyone, apart from employees, with whom you interact as part of your business operations such as:
Public liability insurance does not cover employees, temporary staff, students or people on work placements – for this you need employers’ liability insurance.
You should consider product liability insurance if your business designs, manufactures or supplies a physical product that is sold or given away for free. Your business may be held legally responsible for any injuries to people or damage to property caused by a faulty product.You can be held liable for faulty products even if you did not manufacture them. You may be liable for compensation if:
Product liability insurance protects you against the cost of compensation for:
If you offer your knowledge, skills or advice as part of your profession – either as a self-employed individual or for a company – you should consider taking out professional indemnity insurance.
Professional indemnity insurance protects you against claims for loss or damage made by clients or third parties as a result of the impact of negligent services you provided or negligent advice you offered.
Compensation claims can be brought against you even if you provided a service or offered advice for free.
If you are an employer you are legally obliged to have employers’ liability insurance. You can be fined up to £2,500 for every day you do not have appropriate insurance.
Employers’ liability insurance usually covers the cost of compensation and any associated legal fees – check with your insurer to see exactly what your policy covers.
If your company has directors or key managers, directors’ and officers’ liability insurance can cover the cost of compensation claims made against them by shareholders, investors, employees, regulators or third parties.
Directors and officers have specific duties, responsibilities and powers relating to their positions. These are usually set out in their job description or terms of reference. If a director or officer of your company is found to have acted outside of their terms of reference, civil, criminal or regulatory proceedings can be brought against them.
Do I need business insurance to work from home?
Though it’s not a requirement to have business insurance when working from home, there are some different types of insurance that it might be worth considering.
If you work from home regularly, you should think about your home insurance. Working from home doesn’t necessarily mean that you need to take out different cover, but you need to make sure that your insurer understands your situation.
For example, if you store stock or expensive equipment in your home, it should be covered against theft or damage. If you offer online services or handle client data, you might want to consider professional indemnity insurance. If you have clients visit your home for meetings, public liability insurance will offer protection should they have an accident or suffer an injury while on your premises.
Remember, if you are running a business rather than just working from home, you will need to have the appropriate commercial property insurance.
How do I buy business insurance?
Business insurance is usually sold as a package, combining a number of different policies under one premium.
The types of policies you need, and the cost of your premium, will be based on a number of factors including:
- the nature of your business
- its annual turnover
- the number of people you employ
- your insurance claims history
- You can buy business insurance directly from an insurer, or from a specialist broker through the British Insurance Brokers’ Association (BIBA).
Here at Starfish, we can assess your business and help you decide what insurance you need.We can go through the different options and advise you on the best path to take.
Simply contact us for a no obligation chat and we can take it from there!