|A Guide to Business Insurance:
What Protection Your Business Needs
Even the smallest business will need some form of insurance coverage, and if you run a larger business, then you may well need a variety of insurance options to make sure that you are as protected as you can be. In some cases, the types of insurance a business needs will be a legal responsibility, and in others, they will just add to the mix of properly insuring your business.
The fact is that there are all kinds of business insurance options from small business insurance policies through to specialist policies for large organizations. The key thing to remember—whether you are looking for basic small business insurance or simply want maximum coverage to make sure that you are properly insuring your business—is that you need to think about all elements of your business before you can assess the types of insurance a business needs.
Common types of insurance for businesses
- Employer’s liability insurance coverage: By law you must have this kind of business insurance coverage in place to protect your employees if they have an accident, become ill or die as a result of the job they do for you. The only way you can get away with not having this coverage is if you employ close relatives, but, even then you should check that you are exempt from buying this kind of coverage. Most companies must have this form of business insurance coverage.
- Public liability coverage: This business insurance coverage is useful if members of the public will enter your business premises as it gives you coverage against any accident or injury they may suffer.
- Product liability coverage: If you manufacture or sell products, then you can use this business insurance coverage to give you legal protection in the event that they harm someone. Even if the problem was not your fault, you could be sued if this happens.
- Vehicle coverage: If you or your staff drive business vehicles, then you legally have to have at least third party insurance in place to protect other people and their property in the event of an accident. If you ship products regularly via courier then you may also want to look at goods in transit coverage.
- Buildings insurance coverage: If you own (and sometimes if you lease) your business premises, then this kind of business insurance coverage will help with any costs arising from incidents that damage your property.
- Contents insurance coverage: This business insurance protection can be set up to insure your stock, your equipment, and your furniture.
- Trade credit coverage: This kind of business insurance will give you financial protection if you have a problem getting payments from customers (for example, if they default on payments or declare themselves insolvent).
- Theft coverage: Theft coverage will give you insurance protection against the theft of your assets. In most cases, this will not cover theft by your employees (you may need a fidelity guarantee policy if you think that this may be an issue).
- Interruption coverage: If your business cannot operate for even a short period of time, you may find it financially stressful. This business insurance coverage will help you out if something happens that prevents you from running your business. It is becoming an increasingly popular type of small business insurance option.
- Money coverage: Another of the types of insurance a business needs may be money coverage. If your business handles large amounts of money, then you can take insurance out to cover loss and damage done to your employees in a theft, for example.
The actual business insurance that you take out will depend on the type of business you run and how it works. Small business insurance needs, for example, may be vastly different to the types of insurance a business needs when it is larger and employs more people.
Properly insuring your business is often a question of looking at all of the business insurance options, whether you are looking for general small business insurance or for a specialist policy type, and then deciding on the types of insurance a business needs. This way you will be properly insuring your business and making sure that you don’t have financial difficulties later.
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