Business Insurance Explained
Running a business means you are putting your finances at risk. It is, therefore, important to reduce uncertainty, manage risk, and protect your investment. Business coverage will protect the machinery and equipment needed to stay in business. You, your employees, and other people with whom you interact with in your business will be assured of protection from any loss that you might face.
The right business coverage will also provide financial support in case your business will not be able to operate following an unforeseen event such as fire or natural disaster. Have you thought about how you will get back on your feet if your equipment, stock, or even your business premises were badly destroyed or damaged? Would you manage to redeem yourself from the financial loss and continue running your business?
Is Having Business Coverage a Legal Obligation?
Whether or not you are lawfully required to possess business insurance largely depends on the particular business you are running. For instance, employers’ liability insurance is legally required for most businesses with staff, while covers such as professional indemnity, could be demanded by regulatory bodies.
Different Types of Coverages Under Business Policy
The type of business coverage you take will depend on your particular business and the kinds of risks you face. In case your business involves interacting with third parties- suppliers, clients, customers, or other people, then it will be prudent to consider public liability insurance.
In case your business offers professional services or advice, or if you deal with intellectual property or client data, then it is good to consider professional indemnity insurance.
In case you have one or more workers, then it is likely that you are legally required to buy employers’ liability insurance.
What is Covered Under Business Coverage
Public liability covers compensation allegations made against you by any member of the public. This includes any damages or injuries caused by your business.
Employers’ liability covers workplace damages or injury allegations made by staff.
Professional indemnity covers accusations made against you by your client because of a fault in your work that made the client suffer a financial loss.
There are also other additional business insurance covers that you can consider to protect your stock, contents, equipment, buildings, and tools.