An Informative Article From Our Trusted Insurance Partner
Buying professional insurance: time well spent or time well wasted?It’s likely you think the latter. If only because it can take an age just to work out what’s what and why you need it
But you don’t have to be an insurance genius to know how to protect your business – you just need to know someone who is.
And now you do.
Professional indemnity insurance
Professional indemnity insurance is essential if you provide a specialist service. This includes design, planning, financial or business advice, teaching, writing, accounting, or any other specialist area of expertise that clients pay for.
It helps if a client or third party alleges your mistake has cost them money and they decide to sue you. Even if you haven’t actually made a mistake.
Your insurance pays for a specialist solicitor to defend you, as well as covering any compensation if you aren’t fault. In some situations, it helps fix a problem before your customer finds out, protecting your reputation.
Everyone makes mistakes. The good thing about professional indemnity insurance is that you can get on with running your business without having to worry that one of yours will put you out of action. Many customers are reassured to know you have it, and you may find some won’t agree a contract without it. And it usually only costs a couple of hundred quid a year: a bargain when it comes to peace of mind.
Public liability insurance
Public liability insurance is for anyone who visits clients, or has clients visit them. It’s basically ‘accident insurance’: it protects you against claims of personal injury or third-party property damage.
For example, you’d be covered if a client tripped over a piece of furniture in your office, hurting themselves in the process. Like professional indemnity insurance, public liability insurance covers solicitor’s costs, as well as compensating your client or third party.
Employers’ liability insurance
As the name suggests, you only need this type of insurance if you have employees.
Employers’ liability insurance covers you if an employee suffers a work-related injury or illness and your business is to blame. For example, you might not have given proper training to a worker on how to lift heavy items and they then put their back out.
Employers’ liability insurance covers any legal costs associated with a claim, as well as compensating your sick or injured employee.
The important thing to remember here is that it’s a legal requirement for businesses with employees (even just one). If you don’t have it and you ought to, the Health and Safety Executive can fine you £2,500 for each day that you’re without the right cover, as well as £1,000 for not displaying the appropriate certificate.
Office and general business insurance
Nice and simple, office insurance covers the cost of replacing or repairing property owned by your business if it gets lost, stolen, or damaged. That can include the building itself as well as its contents.
What’s specifically covered by this policy is up to you, but you can insure pretty much anything owned by your business. That includes furniture and other non-technical things, artwork, computers and other electronic equipment, as well as portable gear such as laptops, tablets, and cameras.
It can even cover you if outside factors mean you can’t get to your office for business as usual.
Directors’ and officers’ insurance
Directors’ and officers’ insurance covers the people in charge of running your business.
In the UK, a company director has unlimited personal liability. That means that if someone doesn’t like the way your company does things, they can take legal action against you personally.You can’t hide behind your company, and your personal assets are at risk if you can’t cover the costs.
Directors’ and officers’ insurance helps by picking up the solicitor’s tab and
This covers you against cyber-crime and the consequences of viruses.
For example, a hacker could use the tiniest of faults in your digital security to obtain confidential customer data, or a virus could corrupt your entire system, leaving it unusable. E-risks insurance pays to sort out any damage, as well as compensating your unhappy customers in the meantime.
Good business sense
As you can see, there’s insurance for pretty much everything. Where you draw the line is up to you and your budget.
It’s worth taking some time to consider the what, how, where, and with whom of your business and get a clear idea of what could go wrong. At least then you’ll know roughly where the line might start.
For more information on how much business insurance from Policy Bee will cost you >> click here for an online quote.