Do small business need insurance?

insurance company plaque, 3d renderingSmall businesses need company insurance, as failure to do so can prove to be catastrophic. Taking out business insurance policies will also offer peace of mind to small businesses, as they will be thoroughly covered if and when a claim is made against them. This is particularly true of small business liability insurance and business indemnity insurance.

Public Liability Insurance

This is a type of major to small business insurance that offers legal protection in the instance of claims for negligence. For instance, a claim may be made against a business if an injury has occurred on business premises. A claim may also be made against a business if a person’s property has been damaged on business premises. As well as covering the general public, public liability insurance also covers contracted workers who are injured on the premises. The insurance policy will cover compensation and legal costs, if there is a successful claim made against a business. Public liability insurance doesn’t just cover accidents on business premises, as homeowners who employ a business to carry out work in or on their home can make a claim if any damage results. There’s also available, public liability insurance for self employed people.

Product Liability Insurance

Product Liability Insurance will often come under the public and product liability insurance umbrella, and the product side will cover injuries caused to others by a product. Both a manufacturer and supplier of a product can have legal action taken against them in this instance, so both groups need to be covered.

Professional Indemnity Insurance

Insurance for small business should cover every angle. If a small business carries out work for other businesses then it should take out a professional indemnity insurance policy. Sometimes a business will offer its services to another business, and something will go wrong. One company could lose money because of the employed company’s mistake, which could include such things as loss of or misuse of data. This is where a small business professional indemnity insurance policy business will help save a small business from financial problems, in case it has legal action taken against it. In the event of legal action, professional indemnity insurance cover will result in losses being covered by the policy. as will legal costs.

Employers Liability Insurance

Employers and public liability insurance are similar, but this insurance for small business covers employees rather than members of the public and contracted workers. Employers’ liability insurance covers employees who are injured or fall ill at work. There’s also no escaping this type of insurance for business, even for a small business employing one person, as it’s a legal requirement. This is an insurance policy which will pay out for a successful claim for compensation, and legal costs are covered, too. There are VERY heavy fines for small businesses that don’t have employers’ liability compulsory insurance in place to protect their employees, and, ultimately, it’s a type of liability insurance for small business that will also protect the small business as well.