The Beginner’s Guide to Business Insurance

Having insurance is key to reducing stress when it comes to running a business. Whether you own a shop or you provide a service, covering your own back means less to worry about when things go wrong.
The insurance that you’ll need will depend on the business that you run, but there are certain types of insurance that every business will need.
Make sure that you have the insurance you need with our short guide to the key areas that you should get covered.
Public Liability
Public liability insurance protects you from people outside your business. Perhaps they slipped in your shop because there was water on the floor or an employee accidently damaged their wall while they were carrying out work on their home, for instance. Public liability will usually cover compensation and legal fees.
If members of the public, i.e. potential customers or clients enter your premises, or you enter theirs, then it’s worth buying this type of insurance.
Employers’ Insurance
If you employee anyone, even if it’s casual or temporarily, then you’ll need to buy two types of insurance: workers’ compensation, unemployment insurance and disability insurance. In the USA to employ anyone without these is illegal. It protects you if they become ill or injured because of the nature of their work, or if they have an accident on the premises. They may seek compensation from you.
Property Insurance
It doesn’t matter what business you’re in, without your tools, you can’t work. Your tools might be the building your business resides in, or the IT equipment your employees use, and without them, you have no business.
Make sure that when you’re buying this insurance that the sum you’re insured for is equal to or larger than your equipment value – otherwise there is no point in the insurance.
Professional Indemnity
This type of insurance is for those who are offering an advice service, that when followed may result in a client’s loss of money. If the client were to claim for compensation, you will need to at the very least defend yourself, which will result in legal costs. Professional indemnity insurance could protect you from paying out compensation and paying legal costs.
Specialist Insurance
Specialist insurers like Catlin USA offer very particular types of insurance that cover things that a standard insurer might charge a premium for, like equine insurance or inland marine insurance. If you feel that you want something specific to be covered, then you’re often better off going to a specialist insurer.