All businesses carry risks and should have insurance to provide financial protection to cover them. But do you know what types of policies to look for in a business insurance pack?
This starts with knowing the sorts of things you need to insure (such as assets, revenue, workers, customers and the general public), and what your business’s risks are.
Typical business risks include fire, theft, equipment breakdown, interruption, employee injuries, injuries or losses to customers or the public, cyber attacks, fraud, and loss of reputation.
Here’s an overview of the cover you must have, and other policies you might need.
Compulsory insurance
- Public liability – financial protection for third-party harm, injury or death due to your business.
- Workers’ compensation insurance – for all businesses with employees to cover workplace injuries. This insurance also reduces the risk lawsuits from injured employees.
Non-compulsory business insurances
Most SMEs will need at least some of the following insurance types for financial protection:
- Property insurance – cover for premises, contents, equipment, cash and other physical assets.
- Business Interruption – revenue and expense cover in case your business needs to close temporarily due to a covered event.
- Liability cover – e.g. product liability for retailers, and management liability to financially protect key personnel.
- Professional Indemnity – cover for professional services businesses for claims of wrongful advice or negligence.
- Cyber insurance – a very important cover for the 21st century in case of cyber attack or online scams.
- Other insurance types – such as motor vehicle and travel policies.
Specific industry insurance covers
Depending on the type of business, tailored insurance types may be required.
- Medical malpractice cover – in case of breaches of professional duty in health and medical settings.
- Farm insurance policies – for crop failure, weather, farm equipment and buildings.
- Hospitality and food – such as cover for food contamination and refrigeration breakdown.
- Trades business cover – e.g. for loss of tools and portable equipment.
The important things are to get insurance that matches your business’s specific risks, and to ensure your business pack gives you value for money. That way your risks will be fully covered, and you won’t be paying for insurance types you don’t need. Get in touch with your local Reliance Partner if you would like to find out more about tailored business packs for your SME.