Business Insurance
While the term business insurance seems so simple and straight forward, it can be a potential minefield for those actually requiring such cover. When operating a business you may be opened up to a vast array of potential liabilities, some of which can be enormous in size. It is therefore essential that you cover every current and future potential liability which you may come across - you never know when you may need to use that cover!
While impossible to simplify the product, but there are a number of areas which are common to most business insurance arrangements which include:
Employee Cover
This is the type of insurance which covers all employees, staff and workers from potential accidents on the businesses premises, or while acting on behalf of the business. For companies employing hundreds if not thousands of people, this kind of cover is vital and can potentially save a fortune in compensation claims.
Business Activities
This is perhaps one of the most vital areas of business insurance for the business person, as it covers the company against any claims from customers or those whom they have dealt with. In every business there is the potential for an employee to give wrong advice, sell an item which is not working, etc, which potentially leaves the business open to a claim.
Business Income
In the event of an accident or event which resulted in a business not being able to operate for a period of time, it is essential that an income stream is in place to ensure staff and suppliers are still paid what they are owed. Business income insurance is often part of the overall business insurance package, and can literally be the difference between survival and closing down. The importance of cash flow can not be over stated - it is the life blood of any business.
Property Insurance
Again, this is an important part of any business package and can mean the difference between survival and closure. In the event of a business being unable to operate out of a premises, it is vital that alternative arrangements are made as soon as possible. A payout from the insurance company will assist in this, and ensure the business is able to continue trading.
Conclusion
These are just a few of the more common business insurance elements although the exact requirements will vary from business to business. While often illegal to trade without some form of business insurance, the potential risks are not even worth contemplating - they can, and have in the past, run into millions of pounds.
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More Than Business Insurance
Our public liability insurance cover is available for contractors with an annual turnover of up to £1 million. Ideal for small business, contractors insurance includes the option to add Employers' Liability cover too.
