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What commercial insurance do I need?

If you are thinking of starting a business, you may be scratching your head asking yourself, what commercial insurance do I need?

As every company has different needs, it’s essential to make sure that the risks your specific business faces are covered. A good commercial insurance policy will cover your business if something goes wrong and can foot the bill for things like compensation payments and legal costs. Here, we outline the main types of business insurance you should consider.

When starting a new business venture, it is a good idea to speak with a specialist commercial insurance broker who will advise you which business insurance policies you need by law and which ones are advisable for your peace of mind.

Please speak to our team of trained insurance professionals today for details on which commercial insurance protections could benefit you.

For more information or a quote, call 01803 659118 or email personallinesleads@rivierainsurance.co.uk

What is Employers’ Liability Insurance?

The only type of business insurance that is legally required is employers’ liability insurance. If your business employs anyone, then you need at least £5 million of cover.

You could be fined a maximum of £2,500 for every day that you don’t have insurance. Employer’s liability insurance should cover any compensation claims made by your employees for injury or damage caused by their work.

What is Professional Indemnity Insurance?

Another important insurance to consider when starting your own business is professional indemnity insurance. Professional indemnity insurance protects you against compensation claims made by a client because they think you’ve made a mistake in your work. This includes breaching confidentiality, infringing copyright, or giving advice that causes your client to lose money. PI insurance is essential for businesses that offer a professional service or provide advice.

Some professional bodies and regulators insist that their members have a professional indemnity policy, including law, financial advice, accountancy, architecture and healthcare.

What is Public Liability Insurance?

Public liability insurance is worth considering if your business comes into contact with the public. PL insurance is a specific type of liability insurance suitable for hotels, bars, pubs and restaurants and retail shops, or any other venture where customers come to your premises. Public Liability insurance should cover compensation claims made by someone who blames injury or damage on your business. For example, if a customer is injured when they slip on a wet floor in your shop.

What is Product Liability Insurance?

Product liability insurance protects you if a physical product you sell causes injury or damage to a member of the public.

As with professional indemnity insurance, public and product liability cover can pay out for the legal costs and any compensation payments up to your policy limit.

What is Commercial Property Insurance?

If you’ve got business premises such as a shop or an office, buildings and contents insurance is another consideration. Rented properties usually only require contents insurance, but owned, or mortgaged business premises will need buildings insurance.

When running a business from your home or renting your home out to paying guests such as Airbnb, you should carefully check your home insurance policy documents. Standard home insurance policies do not ordinarily cover this type of business activity. Holiday lets and holiday rental properties often have different types of insurance requirements – you can find out more about those here.

A relevant commercial business insurance policy will provide you with appropriate insurance protection if anything goes wrong.

Please speak to our team of trained insurance professionals today for details on which commercial insurance protections could benefit you.

For more information or a quote, 01803 659118 or email personallinesleads@rivierainsurance.co.uk