The Different Types of Business Insurance Available

Having an insurance policy in place is vital for any company, regardless of whether the company in question wishes to invest in employee liability, professional indemnity or public liability.

Here we look at the different types of business insurance available to help you choose the best one for you.

business insurance protection
Business insurance is necessary in protecting your business from potential legal issues and more – photo credit

Business covers explained

Insurance is one of the most important expenses a business may incur. However, as every business is different, not every insurance policy is suitable to each. It’s therefore important to learn what type of cover your current business requires.

Having the right knowledge in place is a helping hand when it comes to choosing a certain type of business insurance policy.

Public Liability Insurance: possibly the most popular insurance cover for many businesses, public liability is a must for any company that intends to interact with the general public. This particular policy is put in place in order to cover a company’s back in the case of an accident involving a client or customer; for example if a member of the public was to slip on a wet floor inside your office or alternatively one of your drivers was to accidentally reverse into bollard or a shop wall.

Often these mishaps occur unintentionally, yet without public liability insurance they can have huge consequences. If a claim occurs, you as the company won’t be asked to shell out on expensive legal costs; your policy will cover these costs for you.

Employers’ Liability: this particular insurance policy is required by law and provides cover for your employees. Staff may have an accident whilst at work or be taken ill.

There are many employer liability insurance policies available and it is wise to ensure you choose the one that is most fitting to your circumstances.

Do I need Professional Indemnity Insurance?

It’s not uncommon to make a mistake at work every now and again, however, some mistakes cause more harm than others. A wrong move could result in a financial loss for either a client or yourself.

For example, if you work as an architect and have been asked to commission the construction of a new house only to discover it collapses a few months later – due to faulty materials or a mistake in the building process – you are liable for this fault.

Having Professional Indemnity Insurance in place will cover the costs incurred from this mistake as well as legal fees.

About the Author: This article is written by Laura Wright