Details, Fiction and drone insurance
On top of all of the other things that you need to consider when you begin your business, is whether or not you need to have business insurance. Most all businesses have some risk of liability, and because of this, business insurance should be a priority. As with everything else in your business, insurance for your business is filled with differences, as well as choices, and of course cost.
Within the general term of business insurance, there are several kinds of insurance that you would need to consider. The first being Liability insurance, the second being Worker's Comp insurance, and possibly business auto insurance, errors & omissions/professional liability, and umbrella insurance.
The most common type of insurance is Liability insurance. Often, this type of coverage is written on a policy that also covers any business personal property, such as your computer, and office equipment. The purpose of liability insurance is to cover any losses you may have that damage a person or their property while you are conducting your daily business operations. An example of this would be if you own a small grocery store, and a customer falls and slips on a wet floor. Your liability insurance would cover their medial bills, any physical therapy they may require, and possibly even additional payments for emotional stress. Of course, if you have no contact with your customers, then you may not have a need for this type of insurance. You 'd need to speak with a licensed, experienced insurance agent in your area to determine if you need this kind of insurance.
Another important type of insurance is worker's compensation, which covers any injuries your employees incur while working for you. Each state has their own regulations, and many enforce the requirement for worker's compensation insurance on any business that has three or more people working within the company, including any officers, owners, members, etc.
Other types of insurance include business auto insurance, which is insuring any vehicles you use specifically for your business - such as a truck you use for grocery delivery to your customers. If you are a lawyer and neglect to disclose back taxes owed on a property, your professional liability insurance will cover any costs you incur due to the resulting legal actions. Umbrella insurance for businesses is the same as it is for personal insurance.
There are many different types of policies, as you can see, and even more options within each policy, and each company that can greatly benefit your business in the event of a loss. Just like you would insure your life, or your health, you need to insure your business. The idea of insurance is to put you back in the same place you were before the loss occurred. Even if you don't like paying the premiums, you'll be glad you did if you ever have to file a claim. So call your agent today!
Errors & Omissions insurance is designed to cover any mistakes you make during within your work. For example, if you are a lawyer and neglect to disclose back taxes owed on a property, your professional liability insurance will cover any costs you incur due to the resulting legal actions. Umbrella insurance for businesses is the same as it is for personal insurance. It is simply an extra layer of liability coverage that will kick into action if your other policies are exhausted. If your legal bills from forgetting to disclose the back taxes exceed your basic policy limit, your umbrella policy would cover the excess.
The idea of insurance is to put you back in the same place you were before the loss occurred. In the UK there are many different types of Business Insurance. For a new business that has no staff or an existing enterprise with teams of employees it's important to decide what level of insurance you must have and those that are advisable.
Here is a list of 16 different types of Business Insurance you might consider.
Employers' Liability Insurance - The Employers' Liability (Compulsory Insurance) Act 1969 requires that employees be covered against injuries whilst doing their job - Mandatory.
Motor vehicle insurance - Most business policies are comprehensive or third party, fire and theft. Legally you must, at least, insure your legal liability for injury to others and damage to their property - Mandatory. Make sure the relevant policy accounts for this if you use private vehicles for business use.
Professional indemnity insurance - Protects businesses against loss, injury, or damage, arising from their professional negligence or that of their employees. Depending on your industry certain profession MUST have insurance, these include; architects, accountants, solicitors, surveyors, insurance brokers and financial advisers.
All of the following types of Business Insurance are recommended.
Business travel insurance - Some employees travel extensively around the world. Cover management liability against delays, loss of life and injury; equipment and money is recommended.
Fidelity guarantees - If you are worried about dishonest employees Fidelity Insurance covers against loss of cash or stock.
Key Man insurance - Some businesses would cease to function properly without certain individuals. It's not uncommon to insure Directors and senior managers against the loss of income from death.
Premises insurance - Much like home insurance your business premises should be insured for the complete rebuilding cost.
There are two types standard and "all risks". Talk to your broker about what level of cover you might need.
Contents cover - If you business holds any type of stock you might consider business contents insurance.
Plant and business equipment - Much like contents insurance, you can insure your machinery or business equipment.
Goods in transit cover - This is a popular insurance if you are looking to dispatch high net worth items. The post office always asks the value of your item being sent. Goods in transit cover operates in the same way.
Engineering insurance - Engineering insurance covers against mechanical or electrical breakdown.
Business interruption insurance - The riots in London in 2011 resulted in claims for disruptions to your business. Claims for loss of income and expenses would be likely.
Public liability insurance - This is a very common policy that covers your business from damages to members of the public, either for injury, property or death damage.
Product liability insurance - If you sell a product you need to consider carefully whether that product may harm an individual due to defects or negligence in manufacture. If so, you need to talk through the risk with your legal adviser.
Pollution risk insurance - Pollution is taken very seriously by the Environment Agency. If your business is caught polluting the environment you could be liable and fined and forced to pay to clean it up.
Directors and officers insurance - Company directors and officers have specific duties and responsibilities, for which they can be held responsible. Directors and officers insurance provides cover for compensation and legal costs, if they are found to have inadvertently acted outside their terms of reference.
Within the general term of business insurance, there are several kinds of insurance that you would need to consider. The first being Liability insurance, the second being Worker's Comp insurance, and possibly business auto insurance, errors & omissions/professional liability, and umbrella insurance. Other types of insurance include business auto insurance, which is insuring any vehicles you use specifically for your business - such as a truck you use for grocery delivery to your customers. The first being Liability insurance, the second being Worker's Comp insurance, and possibly business auto insurance, errors & omissions/professional liability, and umbrella insurance. Other types of insurance include business auto insurance, which is insuring any vehicles you use specifically for your business - such as a truck you use for grocery delivery to your customers.