Do you think your business can survive after an unexpected pandemic hit the economy?
Are you planning to have a business insurance plan to protect your business from such a risk? If yes, then you must have some clues about the industries your business comes under, and the insurance policy you choose should meet the need of your industries.
It’s tricky to choose the best insurance policy for your business and for that you can sick a professional help from accountants, or here is the guide for you to choose the best insurance policy you should consider for your small business.
Why business insurance?
There are many risks, damages, or crisis a business can face, but if you have business insurance, then you can feel confident and protected from that.
Not only you but it can also help your employees to get quick backup after facing an unexpected tragedy.
Business insurance can also show you are reliable to work with.
What type of business insurance do you need?
Employer’s liability insurance is a legal requirement, whether you are a small business owner or a established businesses with thousands of employees.
If your employee claims any injury or illness during working in your business, then this policy can cover the compensation cost involved in defending the case.
You can be fined £2,500 every day by the regulator if you don’t have this insurance policy in place.
There are many other policies you should also consider as a small business owner to protect yourself against financial losses.
This is one of the great policies for small business owners. Liability Policy includes,
Public Liability Policy:
If your customers make claims against you, then you can easily protect your business if you have Public Liability Policy. This policy is not mandatory legally for you as a small business owner.
Personal injuries, death, and damage of property, such cost can be covered under this policy.
Product Liability Policy:
If your business is manufacturing or selling any products and caused harm to any of your consumers, then compensation cost and legal charges can be covered under this policy.
This policy can cover loss, damage, or personal injuries caused by your defective products.
This policy will be helpful if your business is about advising, providing knowledge, or skill development.
If your clients find your business is providing any negligent knowledge or service, then the charges on your business can be claimed by this policy.
Directors’ and Officers’ Liability Policy:
This policy covers claims made against your business’s directors and managers for breaching of trust or duty, misleading statements, and wrongful trading by shareholders, investors, employees, or third party.
Without this, insurance directors and managers can face a risk of not being able to defend.
Commercial Property Policy:
Natural disasters like flooding, falling trees, and storms can be covered under this policy. The cost of restoration and rebuilding your business infrastructure can be covered under this policy.
Commercial property insurance also includes building insurance policy and contents insurance policy.
The cost of restoration and rebuilding your damaged office infrastructure will be covered under Building Insurance Policy.
This policy is not mandatory according to law but many mortgage lenders would demand so. If your business infrastructure is not yours, but you are renting it, then it’s the landlord’s responsibility to have this policy.
The cost of stolen and damaged equipment or stokes of your business can be claimed under the Contents Insurance Policy.
Cyber Insurance Policy:
Data lost from the cloud, damage of data, and cyberattacks types of cybersecurity-related issues ever happen to your business then you can cover the loss using Cyber policy. There are two types of costs you can claim for cyber issues by this policy: first-party and third-party.
The first-Party policy will cover the investigation of cybercrime, data damage, network restoration, theft of digital equipment costs, etc.
Loss of third party data, security violations, civil damages, Crashing of Software, or applications can be covered under Third-Party Policy.
Which policy you need in 2020 for your small business and the premium is based on several factors like the number of employees, and the nature of business. You can do a quick on insurance policy comparison platforms like moneysupermarket, comparethemarket, confused.com and gocompare.
Insurance is sold as a package and combines different policies under one premium. You need to choose one plan as per your specific business needs and also can give you flexibility as your business grows. For complex policies, you may wish to contact specialsied insurers like Lloyds of London.
About The Author:
Aarif Habeeb is a Digital marker and Content manager at 123Financials – An Accounting Firm in London. He is a passionate blogger and love to share his knowledge on various subject. Content created by 123 Financials are loved, shared & can be found all over the internet on high authority platforms.