What is Business Insurance?

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What is Business Insurance?

What is business insurance?

Business insurance can protect you against losses incurred during the running of your business, for example, if a customer or employee makes a claim against you, or if your equipment is damaged.

The terms are often used to describe employers liability and public liability insurance, the two main types of business insurance. But there are other types of insurance available, each one covering a slightly different aspect of business.

And as each policy is different, it’s important to know what’s actually covered by your business insurance so you can fill in any gaps. 

The different types of business insurance that you need to be aware of are:

  • Public liability
  • Employers liability
  • Product liability
  • Professional indemnity
  • Business interruption
  • Business contents
  • Key-man
  • Credit risk
  • Cyber
  • Plant and machinery

Read on to find out about the different types of business insurance, so you can decide which you might need for your business.

Public liability, for injured clients or their damaged property

If a client slips and falls at your business, or you accidentally damage something of theirs while you’re working, this insurance could cover the cost of claims and legal fees.

Employers liability, for any business with employees

You’re legally required to have this type if you have any employees at all, even just one – temps, part-time or full-time. It can help cover the cost of claims made against you if an employee is injured or gets ill while working for you.

Product liability, for the products you supply

This can help compensate anyone who has suffered damage or injury because of a product you designed, repaired, or supplied. You don’t have to be the manufacturer to be liable for damages.

Professional indemnity, for a client’s lost sales or damaged reputation

Professional indemnity insurance is for businesses that offer knowledge, skills or advice as part of their work. If you work leads to a client’s loss of sales or damaged reputation, this type can help cover the cost of legal fees and claims.

Business interruption, keeps finances running when your business can’t

Taking out a business interruption insurance policy will cover you for loss of sales and profits during a period that you’re unable to operate due to unforeseen circumstances like floods or fires.

Business contents, for the physical contents of your business

This wil make your business tick, for example, computers, mechanical equipment, tools, machines and stock.

Did you know? 

Home Based Business
Illustration for Home Based Business

If you run a home-based business, work-related items, like computers, stock and tools, might not be covered by your home insurance. You’ll need to tell your home insurance provider you’re working from home, as it could invalidate your policy if you don’t. They may amend your policy, or depending on your business, you might need to take out separate business contents insurance for your work-related items.

Key-man, for your valuable employees

If there are particular people who keep the business going, you can insure them. Then, if for some reason those individuals can’t work, you can be compensated for that loss.

How can I compare cheap business insurance?

Getting your business covered isn’t about finding the cheapest option; it’s about finding the right package at the right price. Use our business insurance comparison service where we’ll bring you a choice of insurance providers based on your needs, so compare today and see how much you could save.

Site Reference :

https://www.investopedia.com/terms/b/business-insurance.asp

https://www.aig.co.id/en/business

https://www.thehartford.com/business-insurance/types-of-insurance

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