As an employer you are legally required to have certain types of business insurance. In addition there are other business insurance products you may want to consider. Here's an overview of your business insurance obligations and options...
Employer's Liability insurance (ELCI)
You are required by law to have this business insurance if you employ one or more people on a full-time, part-time or temporary basis.
This type of business insurance covers the cost of compensation and legal fees if an employee is injured, is made ill or dies during the course of their employment. By law, this business insurance must cover at least £5 million, but most of these business insurance policies offer at least £10 million.
Public liability insurance
This business insurance covers the compensation and the cost of legal fees if a member of the public is injured or killed or their property is damaged as a result of you or your employees' negligence.
This business insurance is not compulsory. However, if members of the public come onto your property or you go onto theirs, it's a business insurance you should consider.
Product liability insurance
This business insurance covers the cost of paying compensation to anyone who is injured or whose property is damaged because of a fault in something your business has designed, manufactured, supplied or repaired. This business insurance generally covers between £1million and £5million, with £2million the norm.
It's prudent to have this business insurance if you design, make or supply goods. You are legally responsible for any damage or injury caused by a product you supply, whether or not you have this business insurance.
Professional indemnity insurance
This business insurance covers compensation to clients for businesses that provide professional advice or knowledge that proves to be wrong or negligent, and which results in them losing money.
Lawyers, accountants and financial advisers are required by law to have this business insurance, but any business providing professional advice or services should consider it.
Key person insurance
A small business often depends on the knowledge or skills of a few people. Key person business insurance pays out a fixed sum if a named person dies or is diagnosed with a critical illness.
Directors' and officers' liability insurance
A company's directors and officers are ultimately responsible for what that company does - and that can include legal responsibility for issues such as health and safety, fraud, data protection and negligence. This business insurance covers you if they inadvertently breach their terms of reference in such a way that leads to a successful claim against your business.
Legal expenses insurance
Situations when you might be involved in defending a legal action not covered by other liability insurance, or if you want to pursue a legal action, are covered by this business insurance. Typically this business insurance covers disputes over contracts and employment issues.
Environment liability insurance
This business insurance product is worth considering if your business activity carries an obvious risk of damaging the environment, including land, water, protected plants or animals. This business insurance covers the cost of repairing the damage.
Business money insurance
This business insurance replaces money belonging to your business that is stolen.
Trade credit insurance
Trade credit business insurance can cover your business against the risk of bad debt due to the insolvency or default of customers who haven't paid you.
Employee dishonesty insurance
This business insurance product protects your business against an employee stealing money or stock.
How uSwitch for business can help
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