2013-11-25

Why You Need Small Business Insurance

As a business owner you will of course have a lot to manage, from the organisation of your business through to the small tasks of organising and making sure you have the right business insurance.  No matter what type of business you are running you will need some form of insurance to protect you, your business assets and employees.

It can be a confusing mass of information about the many types and levels of business insurance.  Some insurance you will require by law and some you will need to add onto a standard package of business insurance tailored to your requirements.

Business insurance is a big investment for any business owner and choosing the right product and package is important.

Common Business Insurances

Employers Liability Insurance is a legal requirement by Law.  It doesn’t matter if you have permanent, temporary, unpaid, voluntary or part time workers your employees still need to be protected with Employers Liability Insurance.  As an employer you have to ensure that your employees are provided with a safe and secure place of work.  An employer’s liability standard policy is up to £10million and can be increased as necessary.

In April 2012 the Financial Conduct Authority made legislative changes that any employer needing Employers Liability Insurance would need to provide an Employers Reference Number.  This is now used to identify which company a person has worked for in the event of a claim being issued.  ERN’s are given to all businesses that are registered with HMRC and can be seen on pay slips and are often referred to as a PAYE reference.

Public Liability Insurance will help you cover the cost of a compensation claim against your business as a result of a member of the public dies, obtains an injury or has damage caused their property as a result of negligence from a person in your employment.  This can also include people visiting your premises/business, people taking part in an activity or people watching an activity that has been organised by your business.  Public Liability is one of the most common types of insurance requirements and the policy covers are available for £2million, £5million and £10million.

Product Liability Insurance is for a business that supplies or makes a product and will cover you in the event that the product causes damage or injury to a person or property.  If you manufacturer a product, including a food or drink products, or your business sells a product that has been made by another person you will also be responsible and will include the change or repair of any product that is brought into the UK from outside of Europe. The policy would be required to ensure the liability of safety of the product.

Professional Indemnity Insurance or also known as PI insurance is for a business or for an individual that provides a service or gives advice.  Such businesses like accountants, consultants, IT professionals that would look for and need Professional Indemnity Insurances.  Indemnity insurance will cover and protect against any trading or financial loss that is caused to a 3rd party in the event of any advise, claims resulting in negligence, dishonesty or defamation, intellectual property rights and loss of data.

If you’re looking for business insurance why not speak to one of our qualified insurance specialists today at The Business Octopus on 0161 968 2060

 

Leanda Hickman is the Digital Marketing Executive for The Business Octopus

 

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