Business insurance is a very broad concept. It covers a variety of different things – however, the primary focus is protecting a company from various risks. This can include both intellectual and physical property. The kind of cover your specific business will needs depends on what you do – which is why this topic is incredibly broad to begin with. However, we at Insurfolio aim to give you a simple, clean and comprehensive explanation.
Naturally, maintaining your business operations is a huge priority.
So, any kind of interruption can throw a huge spanner in the works.
For this reason, business insurance is important – in fact, you’d be stupid not to have it in some form. It doesn’t matter what field you’re in. There are plenty of factors which could derail your business operations and interrupt your flow of income. Safeguarding against these will ensure minimal interruption – and allow you to resume operations as quickly as possible.
Business Insurance – Why it’s necessary
Before continuing, there are a few key points about business insurance that owners should know.
- Certain insurance elements may be legal requirements – however, this depends on the nature of your business.
- Extra (non-mandatory) business insurance options could even keep it running despite the “turbulence”.
- There can be huge differences between providers and policies. That’s why you should shop around.
Numerous types of policy exist. Business premises insurance (also commercial buildings/property insurance), business assets insurance (or business contents insurance), public liability insurance, employers’ liability insurance, professional indemnity insurance and a variety of other specialist policies.
The type of cover you take out depends on your own, specific business needs.
A quick overview of business insurance types
Below you will find a quick overview of some of the most common and important types of cover for businesses. As stated before, it may not be necessary for you as a business owner to take out every single type found here.
Business Premises Insurance
This is good for companies who want to protect their commercial building against a variety of risks. This can include storm damage, explosions, flooding and fire. It is also known as commercial property or buildings insurance. Remember: This is may be necessary if your business actually owns the building from which it operates!
NOTE: Your landlord then has the responsibility of insuring the premises. Unless the building has a shop front. Then it is the tenant’s responsibility.
Business Contents Insurance
You’re not legally required to take out business contents insurance. However, it is highly advisable. This is particularly true if you run a business that uses expensive equipment. Of course, make sure you know what you want to get out of the policy before you decide the level of cover. There are different types, including old-for-new cover or indemnity insurance. With old-for-new, you’ll get the full cost of replacing stolen/damaged items. The latter deducts wear and tear costs.
Public Liability Insurance
We’ve also spoken about public liability insurance in-depth. It is primarily for businesses who have contact with the public. Should a member of the public be injured on your property, this type of cover will protect your business from the costs.
In the same vein, employers’ liability insurance provides the same cover – except for those who are employed by your company.
Other specific types
- Professional indemnity insurance is for companies that offer expertise and advice to other companies. Should a client sue you for negligence, you’ll be covered.
- Specialist business insurance can take a variety of forms, depending on the nature of the business. This is where you’ll have to look into the specifics of each policy yourself.
- Those who work from home need to remember that their standard home insurance policy is probably not enough to protect the needs of their business. This is especially true if you haven’t provided this information to your home insurer. So keep that in mind!