What business insurance do you really need?
Colin Mullan from FindInsuranceNI.co.uk asks you six simple questions.
Let’s face it, buying insurance can be boring and we don’t want to think about it until we need it. But things go wrong and when they do, you’ll take comfort that you had the best level of cover available.
Take five minutes and ask yourself these six business insurance questions.
Why do I need business insurance?
Stay legal! If you have employees or use any motor vehicles as part of your business activities, then not having the right insurance in place could result in a hefty fine. And then there’s potentially crippling costs; things get broken, people and businesses make mistakes and employees become disgruntled. If you or your business are to blame, you could be hit with heavy legal costs, which could be covered if the right business insurance is in place.
Where do you do business?
If you go to different locations to service clients, work from multiple locations within the business or spend long periods of time travelling as part of your business activities, then you’ll need protection for all assets associated with doing the job, whether a laptop or a drill. If you work from one location or multiple locations owned by your company then you should consider property insurance to protect all onsite assets.
Do you employ people?
Apart from being a legal obligation, Employers Liability Insurance protects them and you. Employees may take legal action if an injury is sustained while working for you. Directors and Officers and Legal Protection insurance is advisable for businesses as it will protect you against claims for breaches of employment regulations such as unfair dismissal or bullying.
Do you come into contact with the public?
Accidents happen and if a member of the public is injured as a result of your business, you could incur heavy legal costs as they seek compensation. Even if your business doesn’t deal directly with the public, all it takes is for a visitor to trip over something, so ask yourself the question again.
Do you provide a product or service for customers?
If a customer takes action over a faulty product or incurs some form of loss as a result of your advice, then professional indemnity and products liability insurance can come to your rescue. This can cover you against any legal action disgruntled clients may take.
How much should you pay for business insurance?
It’s always a good idea to shop around to make sure you not only get the best price, but also that your insurance provider understands your business needs and gives you the best level of cover. Ask yourself what your budget is for the year, how big your business is and most importantly, how much you could afford to pay should something go wrong and you don’t have the appropriate business insurance in place.