Why every company needs business insurance
Every business, large and small, needs to carry business insurance. If you employ staff, even if you only employ one person, then it is the law that you carry Employers Liability insurance with the minimum level of £5 million of cover at the very least.
Aside from any legal and/or contractual requirements that may stipulate the need for insurance, there are many more benefits to business insurance that are often overlooked. As a business owner, when you are sourcing insurance policies to protect your company, it isn’t always best to favour the lowest premiums on offer as the level of cover may not be adequate for your requirements.
What are the benefits of business insurance?
Here are five ways business insurance can help you thrive:
Business insurance will help to protect your assets
In the event of a fire or flood damage to your business premises a comprehensive business insurance policy would respond by helping you to continue trading while you get your business back on its feet. The right policy would also help cover the cost of replacing any damaged business equipment.
It adds credibility for your business
Although the only business insurance required by law is Employers Liability cover (1), carrying other business insurance policies such as professional indemnity insurance and public liability cover will help add much needed credibility to your business.
In the modern litigious world, most companies that procure the services of other businesses will insist on their suppliers being comprehensively insured. Without having insurance in place, you run the risk of being overlooked for lucrative business contracts.
Arguably the most important business insurance product is Professional Indemnity insurance (PI), especially for self-employed professionals who provide business services such as advice and designs. Many clients will insist that a contractor or freelancer pitching for work carries PI cover in case something goes wrong, no matter how small.
In fact, you could say that carrying PI insurance helps you win contracts!
You need business insurance to help protect your employees
Employers Liability insurance is required by law for all businesses that employ staff. It will protect you in the event one of your employees suffers an injury or illness during the course of their work and brings a claim against your business. The minimum legal requirement for cover is £5million, Markel Direct provide £10million cover as standard.
You are protecting your customers
Aside from protecting your business, carrying business insurance could also protect your invaluable customers.
Typical insurances a business will benefit from include; Property Insurance, Business Interruption and Liability Cover.
For example, Public Liability insurance will protect your business in the event one of your customers trips and falls over on your premises, injuring themselves in the process. Should they then make a claim against you for damages your Public Liability insurance policy would respond to cover you.
Business insurance can protect you against legal action
With a comprehensive business insurance policy, you are reassured that whatever claim is brought against you, your business insurance will respond and help you cover any costs resulting from it.
One of our most popular freelancer and contractor policies is Legal Expenses Insurance, which will provide cover against most instances where legal costs and expenses are incurred, including:
▪ Employment disputes
▪ Employment compensation awards
▪ Property and landlord tenant disputes
▪ Criminal defence
▪ Tax protection
▪ Regulatory compliance
▪ Statutory licence appeals
▪ Jury service and court attendance
▪ Employment extra protection
▪ Identify theft protection
▪ Contract disputes.
Legal expenses insurance covers your business for a wide range of potential legal disputes including investigations by the Health & Safety Executive, contract disputes, employment disputes with employees and the costs of attending court if required to when you have a claim covered under the policy.
Professional indemnity insurance, on the other hand, specifically covers against allegations of professional negligence – namely errors or mistakes you make in a piece of work (such as a project or report) for a client. The two types of cover insure against different scenarios, therefore, it's important you consider arranging both to ensure full protection.
Whether you are a freelancer, contractor, or a small business owner looking for cover, we can provide you with comprehensive business insurance policies that you will find invaluable.
For further information about what types of cover are available to you and for a competitive quote see our website - www.markeluk.com/business-insurance, or call 0800 640 6600
Related articles:
A guide to small business insurance - Understanding the essentials
Sources:
1. https://riskheads.org/compulsory-insurance-uk/