It’s no secret that all businesses need to have some insurance cover. The trouble is; there are so many different types available, you could easily end up buying policies you don’t need! And the more people you hire, the bigger your insurance costs will end up.
We all know how crucial it is to get covered with suitable insurance policies. So, how do you know which ones you need for your business? The following examples list common forms of insurance that many firms and the self-employed get.
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Professional Indemnity Insurance
What happens when one of your customers buys something from you, and they feel it’s not fit for purpose? In most cases, they would complain, and you could offer to sort the problem out or give them their money back.
Of course, there are some cases where they might feel aggrieved with the way you’ve treated them. Rightly or wrongly, such customers might decide to sue you. Professional indemnity insurance offers cover for such cases. That way, you don’t end up facing a massive lawsuit.
Public Liability Insurance
Do you operate a retail store where your customers can buy from you in person? If so, you will doubtless know you have a legal duty to keep your store safe for clients and employees alike.
But as business owners we don’t always get things right. If someone’s injured themselves in your store, they might sue for the medical costs. As well as “hardship” and loss of earnings. And we all know what that means: lots of compensation to pay!
The good news is that public liability insurance will cover you against such scenarios.
When you drive a vehicle on a public road, you need to make sure it’s got a valid insurance policy in place first. That way, if you have an auto accident, your insurance company can take care of any repair bills and compensation for injuries.
What you might not know is that if you’ve got more than two vehicles, you can get fleet insurance. In a nutshell, fleet insurance is one policy that covers all your company cars.
Even if you run a home-based business, you still need to obtain buildings insurance. But why do you need it? If your home or office burnt down, it would cost a lot of money to have it rebuilt. When you have buildings insurance cover, the policy you take it will cover the cost of the construction.
Most policies will pay for your business to have a temporary office base elsewhere until your premises get rebuilt.
Last but not least is contents insurance. It covers the cost to repair or replace any possessions damaged or stolen in your workspace. I urge you to get this insurance because the cost to replace your worldly goods could possibly put you out of business!
You can also get cover for the loss of digital possessions (i.e. data). Such as when a computer server might fail and you’ve got to buy expensive parts to fix it.