Here Are Some Of The Insurance Policies You May Need As a Business
When you run any sort of business from an office there are several things that you need to take into account when considering your insurance. Just to begin with, if you own the office yourself you will need buildings insurance. Of course, if you only rent the office, then your landlord will have the building itself insured, but if you own the building the insurance can be built into your overall office insurance policy.
If you employ anyone else – even if it is just one employee – you will need to have employee liability insurance. Most employers are legally required to have at least £5,000,000 of employers’ liability insurance or face a fine of as much as £2,500 per day. However, there are some exception to this rule. Most public organisations and businesses that only employ close family members may not require it.
However, if you run a limited liability company and only employ family members you do need to have cover. Furthermore, if you run a limited company and employ one person, or employ nobody but have more than one director, then you still require the insurance. You also require employers’ liability insurance if you have part-time workers, temporary staff, and even students on work experience.
Employers liability insurance covers you for compensation claimed by a worker for illness or injury that has been caused as a result of their work. So, for instance, if you have a faulty carpet in the office and an employee trips over it and injures him or herself, then as the employer you can be held liable. A compensation claim can be made against you as the employer, or former employer, and the court can order that you pay compensation, costs, and other damages. The insurance will cover the compensation and costs up to the amount of the limit of the policy. You may also wish to add public liability to your insurance which will cover you against claims of negligence that are made by any third parties who have suffered injury as a result of your activities.
Of course, it goes without saying that your office insurance needs to cover all your office contents. Anything in your office at all which is moveable – desks, chairs, computers, copiers, and so on – can be covered on a new for old basis. Things such as computers and copiers can also be covered against mechanical breakdown if required.
If you are a business that provides people with advice, such as a Freight Agent or Freight Forwarder, and so on, you will also want to include professional indemnity cover. This provides legal costs in order to help you defend a claim made against you for wrongful advice, errors, or omissions which have caused loss to a client and who subsequently seeks to sue you for damages. Not only does this cover you for legal expenses but will also cover any compensation that may be awarded by the court to your client.
You may also wish to include business interruption insurance. This is associated with damage to your office such as that caused by fire or flooding perhaps, and which leaves you unable to use your office while repairs are carried out. It usually covers you for the Increased Cost of Working that you might experience during the ordinary course of events, and will help to pay rent, overheads, wages, and other expenses that will help to maintain your business until you can get back to normal. Since this type of cover is associated with damages to property, it is unlikely that most of these policies would have provided cover for the coronavirus lockdown.
Of course, many small businesses start with the owner working from home. Unfortunately, home insurance doesn’t cover the cost of a home-based business, so you would need a separate policy to cover your office equipment and any inventory.
Another type of insurance you might need is product liability insurance if you produce any sort of physical product. No matter how careful you are in your production processes, any business can find itself embroiled in a lawsuit for damage caused by a faulty product.
At The Insurance Broker, we can provide you with all of the insurance that you need in order to keep your business safe in the event of damages claims and other costs that might otherwise put you out of business.