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Insurances

Do you need Insurance?

Public Liability – covers the cost of claims made against your business by a client or a member of the public, should  your work have resulted in injury or property damage. Public liability cover protects against the compensation pay outs and legal costs.

People who are self-employed are most in need of public liability

insurance. If you are a sole trader, this should be the first form of business insurance on your list. If something goes wrong and a member of the public is hurt or has their property damaged because of your actions, you are the only one responsible

Professional Indemnity – Professional indemnity insurance can cover you in the event that a client loses money as  a result of negligence in your advice, services or designs. It can cover legal fees and compensation payments, with the  compensation often taking into account the financial loss that the client has suffered.  The limit may be determined by a  professional body you may be associated with eg AAT is min £750K

Key Man Insurance – The object of Keyman insurance is to cover the life of a Keyman for a monetary value so that  in case of untimely death of such Keyman, the loss to the firm is recouped with monetary assistance (insured amount)  received from the insurance company.  This can be used in death and illness/incapacity – so that the firm can bring in someone to do your job in your absence.

Shareholder Protection Shareholder protection insurance pays your business a lump sum if a shareholder dies or is diagnosed with a critical illness. It provides the capital to help your company purchase the deceased or critically ill person’s share of the business and avoid potential disruption to the services you offer.  If your shares pass to a family member, they may not want to be involved in the business and to be honest the business may not want them! – So this pays money to that person, to buy back the shares into the company.

Other Insurances Include:-

Employers’ liability insurance – for any business with employees

You’re legally required to have this insurance if you have any employees at all, even just one – temps, part-time or full-time. It can help cover the cost of claims made against you if an employee is injured or gets ill while working for you.

Product liability insurance – for the products you supply

This can help compensate anyone who has suffered damage or injury because of a product you designed, repaired, or supplied. You don’t have to be the manufacturer to be liable for damages.

Business interruption insurance – keeps finances running when your business can’t. Taking out a business interruption insurance policy will cover you for loss of sales and profits during a period that you’re unable to operate due to unforeseen circumstances like floods or fires.

Business property coverage – for the physical contents of your business. This is insurance for the things that make your business tick – computers, mechanical equipment, tools, machines and stock.

Credit Insurance Risk – Transferring risk away from the business and over to an insurer, credit insurance protects the policyholder in the event of a customer becoming insolvent or failing to pay its trade credit debts. Not only this, but insurers can actually help to reduce the risk of financial loss through credit management support.

Cyber Insurance – generally covers your business’ liability for a data breach involving sensitive customer information, such as Social Security numbers, credit card numbers, account numbers, driver’s license numbers and health records.

We are not insurance specialists so we are providing general advice, specific advice and the implementation of insurance should be done via a qualified insurance company – we are pleased to have some great suppliers we can recommend to look after you with this.

Author

victoria sharp

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