When starting your business there are so many considerations to make that quite often insurance doesn’t get as much thought as is needed. Much like home insurance, every business should be covered against eventualities that may arise at any time. However the world of business insurance can be a confusing mine field that is often difficult to navigate if you don’t know specifically what your needs are. So to make it little easier for you, here are the ins and outs of the policies that you should consider to make sure you and your company are covered from the first day.
Professional Indemnity Insurance
Professional Indemnity Insurance, also known as Errors and Omissions policies is one form that you really need whatever your business offers. Professional indemnity insurance is there to protect you and your business against claims of negligence or errors, caused specifically by your products or advice. This covers all sectors of business so whatever you offer to your customers, if it isn’t as was when sold, then you will be safe from a financial sense.
An example of when this insurance could be invaluable would be if you are a mobile hair dresser and a client gets burnt by hair dye, then you will be covered if a claim is made against you. If you didn’t have any cover against this eventuality, you would be liable to foot the entire bill.
Public Liability Insurance
Public liability insurance is often overlooked as many people believe it is covered by basic insurance policies. This form of insurance is integral to any business and in some cases is even mandatory, so you do need to check if it is a legal requirement in your area to have this in place. Whether your business has a steady flow of clients or if you only have a couple of visitors it really doesn’t matter; if one of your visitors has an accident within your premises then you will need to be covered. It is of the uppermost importance to have this in place and may also mean that you will need to get a health and safety check as long as the standard ‘wet floor’ signs and similar. This may seem complicated and even tiresome, but without these you may be open for claims against you.
It is also important to remember that public liability coverage also gives you cover for when you are within a client’s place of business or house. This form of policy is mandatory if you own a horse riding school or swimming pool, but you should still check out public liability insurance quotes to get all the information.
Employees Liability Insurance
This is a must if you have one or more employees, it doesn’t matter if your business is home based or a large corporation; this is a form of insurance that isn’t covered under other policies. Employees’ liability insurance is needed when an employee has an accident or becomes ill within your workplace, especially if they trip down the stairs or get food poisoning from a company lunch, two scenarios that easily happen.
There are exceptions for this insurance, if your employees are close family members, i.e a spouse or sibling, then they needn’t be covered. However the majority of businesses will need this policy in place. There are many companies that offer advice on employees’ liability, such as AXA Business Insurance.