Do you know the main types of business insurance? If you own a small business with employees, it is vital you get the right full business insurance. Have a look at the main types of business insurance for small businesses.
For instance, if you’re working as a tradesman, or have a home-based business, then you should consider having a tradesman insurance policy. This kind of business insurance typically covers a number of different risks and provides protection on different aspects of your business. You can tailor a tradesman insurance policy to suit the individual needs of your business, which is what makes insurance for tradesman policies so popular. However, if you own a small business with employees, for example, a care home, you may need to consider full business insurance.
Have a look at the main types of business insurance for small businesses.
Professional Liability Insurance:
All businesses need to have professional liability insurance – this kind of insurance is key to providing cover for your business. Also known as professional indemnity insurance, it gives you protection in events such as if your employees, services and products cause damage (alleged or not) to a third party such as businesses, customers and clients. It also covers the cost you may need to pay such as settling claims and legal fees you may be faced with.
Whilst not required by law, property insurance gives businesses protection against risks to their premises. Property insurance is given in two ways – named perils and open perils. Named perils are those that are listed on the insurance such as theft, burst pipes, flooding and fire, which are common and obvious causes of loss. Also known as an ‘all-risk’ policy, open perils are those that comprehensively cover everything, including earthquakes, war and acts of terrorism. Naturally, taking on this type of insurance will be more expensive than a named perils policy.
Workers Compensation Insurance:
Mandatory for businesses, workers compensation insurance covers medical costs and wages lost when workers get injured on the job. This type of insurance comes in when businesses get sued by employees who are injured carrying out their professional duties. Common injuries include slipping on a wet surface, tripping, and injuries caused whilst lifting heavy equipment.
If you’re a home-based business, homeowner’s insurance is the most crucial insurance that you will need. It is very similar to property insurance and covers damage inside and outside the home. Homeowner’s insurance also covers you for accidents and injuries that occur within the home.
Product Liability Insurance:
Product liability insurance is a type of business insurance that protects you in the event of legal liability, arising from injuries caused by a product the business sells or supplies. It covers the cost of compensation claims that arise from injuries or property damage sustained from products the business has designed, manufactured, or sold.
Business Interruption Insurance:
Business interruption insurance is one of the most overlooked tradesman insurance policies, and this is due to the fact that it’s not very well understood. Business owners tend to incorrectly believe that their other insurance policies will cover the effects of when normal working operations are interrupted. Tradesmen insurance policies will cover the typical damages sustained, but they don’t cover the financial losses incurred when there’s a long-term interruption in your business. For example, if there is a flood, insurance policies will cover stock and equipment replacement, but they cannot cover revenue lost if a building needs two months to be habitable again. This is where business interruption insurance comes in.
Are you a tradesman or a small business needing professional business insurance? Have a look at Business Choice Direct, for business insurance at competitive prices. They simplify business insurance and understand how frustrating it can be for customers. Contact Business Choice Direct today.