Getting business insurance - checklist

Getting business insurance - checklistIt's essential to get adequate insurance cover for your business. Some insurances are compulsory, others are highly advisable so that If disaster strikes your business can recover. Here are the main types of business insurance to consider.

  • Legally required business insurances include employers' liability insurance and third party insurance for vehicles.
  • Professional indemnity insurance is also compulsory for some businesses in the legal, accountancy and financial service sectors.
  • Liability insurances can include public liability and product liability. These, and other insurances, can include insurance for legal costs in case of a claim.
  • You should consider taking out buildings and contents insurance on premises, fittings, equipment and stock to protect your business from losses caused by theft, fire or flood.
  • Business interruption insurance provides essential cover against the knock-on effects of incidents: for example, if you are unable to trade because of damage to your premises.
  • You may want comprehensive insurance for vehicles. Bear in mind that if employees use their own cars for business, their normal private insurance cover is unlikely to apply.
  • Personal insurances can include 'key man' insurance to protect the business against losing an essential employee, directors' liability insurance to protect directors against possible claims, and health insurance to benefit individual employees.
  • The most cost-effective way of protecting your business is often to arrange a suitable insurance package. Check carefully that any package covers your particular needs.
  • An independent insurance broker may be useful to help you work out likely threats and the level of cover you need. This service is often free, as the broker is paid a commission by the insurance company.
  • Even the most comprehensive insurance rarely fully covers the costs and disruption your business can suffer. Effective policies and procedures to minimise risks are an equally essential component of protecting your business.