The insurance man
Insurance is there to protect you, your employees and your customers, and others, should something happen. Its important to have the right type of insurance, and to know when you are legally required to have it. We look at the most popular types below;
Employers liability insurance - If you have any employees then you are legally required to have employers liability insurance in case they get injured at work and you need to provide compensation. Employees can claim for illness caused at work after they leave your employment. You should have a minimum cover of £5 million though depending on your business you should consider £10 million. You should display your certificate of insurance in your premises. You can be fined £2,500 per day that you do not have the correct insurance by the Health and Safety Executive.
Professional indemnity insurance - Many professions are required to have professional indemnity insurance cover as a regulatory requirement or as a result of their professional authorisation. This includes solicitors, accountants, architects, mortgage intermediaries, insurance brokers and financial advisers. Many consultants also choose to have this type of insurance. Professional indemnity insurance protects your business against claims for loss or damage by a client or a third party if you have made mistakes or are found to have been negligent in some or all of the services that you provide for them. Professional indemnity insurance will also cover legal costs.
Public liability insurance - If a customer is injured, or their property damaged by you then your insurance will cover the cost of compensation, and/or repair to any damaged property. The minimum level of insurance that you should have is £1 million though you should consider £5 - £10 million if you have a large business. Claims arising out of trips and slips are amongst the most common claims.
Vehicle insurance - If you or an employee of yours injures someone or damages their property, whilst driving one of your vehicles, vehicle insurance will cover the cost of compensation and/or repair. Vehicle insurance can also cover the theft of your vehicle or damaged caused to it by others. Ensure that your cover insures all the people who will use your vehicles.
Product liability insurance - If you are producing and selling your own product, or repairing a product, then product liability insurance provides compensation to anyone who is injured using your product. If you are simply supplying goods sold by a manufacturer then the manufacturer will be liable if someone is injured.
Insurance may add £20-£30 a month to your running costs but the cost of a claim against your business can easily run into the thousands, and not having the legally required insurance can cost you thousands of pounds in fines a day.
