If you’re interested in starting a business, you should definitely think about insurance and what type of insurance is right for your business. The best insurance policy will protect you if something goes amiss and allow you to file a claim which covers legal charges and compensation payments.
Today, we’d like to discuss the most popular forms of insurance. We want you to know what’s out there for business owners. Once you’ve learned about these types of insurance, you’ll be ready to choose the policy that is right for you.
Employer’s Liability Insurance
This form of insurance is the only one that business owners must carry in order to operate legally in the UK. If you employ others, you’ll need to buy at least five million pounds worth of coverage. If you don’t, you may be penalized with a fine of twenty-five hundred pounds.
This fine will be charged each day that you don’t have a valid Employer’s Liability Insurance policy in force. There are some exceptions. For example, if you’re hiring only members of your immediate family, you may be exempt from certain restrictions and penalties.
This type of policy will provide coverage for compensation claims which are filed by your staff members when they get injured on the job. It will also cover the cost of damage which happens in the workplace. One example would be a waiter tripping on a rug and breaking a bone. Another would be a staff member’s carpal tunnel syndrome, which develops due to repetitive strain.
Professional Indemnity Insurance
Another policy to consider is a professional indemnity insurance policy. With this form of insurance, you’ll be protected against claims for compensation which are filed by clientele. These claims are filed when clients believe that your company has made errors.
For example, if a client believes that you have breached confidentiality, infringed copyright or given advice which leads to financial losses, you may be sued. If your business is one where advice and professional services are offered, then this type of insurance may be just right for your needs.
There are governing bodies which require the carrying of this type of insurance. Examples include financial advice, architecture and accountancy governing bodies.
Public and Product Liability Insurance
If you run a business which has a lot of contact with the public, then you should know that Public and Product Liability Insurance will be a sensible purchase. This form of insurance will allow you to file claims for costs which are related to people who sue you due to injuries or damages sustained at your workplace. For example, if someone gets hurt while they perform work on a building or a client gets hurt while they have a slip and fall incident at your place of business, you’ll be able to file a claim which may protect you from needing to pay the cost of damages which are awarded by the courts.
Product Liability Insurance
This type of insurance will protect a business owner if his or her company’s product triggers an injury or causes damage to a consumer. For example, if you sell a product which causes a child to get hurt, your policy will protect you from claims for compensation which are made by the child’s parents.
Now that you know more about some common forms of insurance, you’ll be ready to choose the policy or policies which are right for you.
About the Author:
Morris Edwards is a content writer at companyregistrationinsingapore.com.sg – he writes different topics like Finance in Singapore, “6 Tips for Business Success for Entrepreneurs“ and all topics related to Economy and Business in Singapore.