30 Mar What Business Insurance Do You Need?

What Business Insurance Do You Need?

If you are a tradesman, sole trader or small business, there are a number of business insurance types that you are required to have by law, and others that are highly recommended in order to protect you, your ability to trade, your customers and any other people you come into contact with.

Business insurance legal requirements

If your business has any employees or you use a motor vehicle in order to trade then you will need the following legally required business insurance.

Employers’ liability insurance
It is a legal requirement to have employers’ liability insurance if you have one or more employees who work for your business. Under the Compulsory Insurance Act 1969, employers must protect themselves against claims made by employees for accidents at work occurring as a result of the business’s negligence, or for illnesses caused by working for your business.

Commercial vehicle insurance
If you use your car or a van to travel to your customers’ locations, collect materials and stock, or transport goods to and from your business site, then you will need business motor insurance. Even if you only own one vehicle which you use for domestic and family purposes as well, if you also use it for business tasks then you will need to make sure you have the right cover in place. If you have more than one commercial vehicle, you may need fleet insurance.

Highly recommended business insurance policies

Would you be able to cope financially if a member of the public made a personal injury claim against you, or if your ability to trade was halted by adverse weather or a burglary. The following types of insurance can protect you and your business.

Professional indemnity (PI) cover
A useful policy that provides protection in the event that a claim is made against you for financial or reputational losses as a result of mistakes you have made. Any business which provides professional advice, skills or services should have professional indemnity insurance in place. The regulatory bodies of certain professions require practitioners to have PI cover, however it is not a legal requirement. These professions include: accountants, architects, certain clinicians and healthcare practitioners, chartered surveyors, financial advisers, and solicitors, lawyers and barristers.

Public liability insurance
While not required by law, public liability cover is a prudent choice for any business or tradesperson who deals with members of the public. If you cause damage or injury while carrying out your trade in someone else’s home or on another person’s site, or if someone suffers an accident while on your premises, public liability insurance provides cover in the event that they seek compensation.

Business interruption cover
If your business is unable to trade as a result of damage or enforced closures, your business interruption cover should come to the rescue. The recent coronavirus public health measures have shone a spotlight on business interruption cover and how policies are written, so it is vital that you discuss your requirements fully with a business insurance specialist who can help you get the best and most appropriate cover for your needs.

Other types of business insurance

If you are the owner of your business premises, you should have adequate buildings insurance to cover the building fabric against various types of damage (your mortgage provider is likely to make this a requirement when they provide the loan). Similarly, contents insurance can cover furniture, equipment, stock, cash and personal belongings from accidental damage, theft, fire and water damage.

You may also wish to consider taking out:

• Product liability cover
• Legal expenses cover
• Insurance for high value equipment
• Stock cover
• Contract works cover for construction professionals
• Goods in transit cover
• Business travel insurance
• Industry specific cover
• Terrorism cover

Talk to business insurance specialists for a package designed to suit you

If you need your sink fixed, it’s not the best idea to ask a hairdresser to fix it. So when thinking about business insurance you should seek specialist advice from experienced business insurance providers.

Contact Tredstone today for business insurance packages tailored to your needs.