Is it a need or a want?

Insurance can be an expensive venture which could end up costing you a lot of hard earned money and all you will be getting could be a piece of paper reminding you that you have paid a load of money for insurance.

But what happens if the insurance wasn’t such a waste of money after all?  How do you know if you should run out and buy a policy right now?  We should start by looking at the four different liability insurance types available for small businesses;

Employers Liability

As the name suggests, this insurance is aimed to protect employers from claims made by their employees – if you don’t want to feel the brunt of a lawsuit by your employees for whatever reason they decide then this is the right policy for you!

Employees will be prepared to make a claim against your business for reasons like accidents to illnesses and as an employer you are the one who will be blamed in most cases.  Protect yourself…

Public Liability

Once you are protected from those in your own office you should also think about protecting your business from the outside world – this policy will protect you from third parties who are harmed on your property as a result of any activity by your business.

Obviously, this insurance is less suitable for a graphic designer’s studio as there probably won’t be any situations where harm can occur, but this policy is best fit for businesses that provide public access like shops.

Directors’ Insurance

This policy, once again as the name suggests, covers a businesses directors – although directors in a limited company are fairly safe against claims it is still possible for them to find themselves in a position where they are being sued, for example in cases of negligence.

Professional Indemnity Insurance

If your business is acting in a professional capacity, for example in a way where someone is relying on your professional skills and knowledge, then this policy is what you would need.

A good example of how this policy is vital is when you are an accountancy business.  It is often a legal requirement, but if it is not then it is often advised to take out a policy if your business is dealing in a professional capacity – it is often even insisted upon by clients.

If you feel that you would benefit from the safety of any of these insurance policies then you should investigate further with an insurance company – although these are the main four policies for your small business there are also policies in place to protect contents, buildings, equipment, motors and legal expenses.

Are you insured?

Do you have insurance for your small business?  Are you thinking about insuring your small business?  Has our advice helped you to understand what’s available for your small business?  Leave us a comment and let us know…

Be Sociable, Share!

Our Random Articles

More Links