Business insurance can often seem overwhelming; the language and terminology which those in the insurance industry use may be confusing. Here are a few business insurance essentials to help your search for the correct policy as simple as possible.
In the world of insurance, property used in your business will include the building of which your business is located. You may even need to hold a buildings insurance policy for your business, even if you rent your workspace.
This is because the rules governing private and commercial tenants differs widely. For commercial tenants, it is normal for your landlord to expect you to carry out repairs and maintenance to the property you rent for the purposes of running your business.
Buildings insurance on a commercial insurance policy is similar to the buildings insurance on your home insurance policy. It can provide cover for your buildings, windows, and any permanent fixtures or fittings.
Liability insurance, with reference to business, covers the cost of a claim made against your business, if you are held liable for loss or injury to another third party. Liability insurance can be split into two separate areas; Public, and Employee Liability.
Public Liability insurance can cover the cost of a claim made against you, by a member of the public as a result of an accident involving your business, where your business is held liable.
Employee Liability insurance protects your employees if they are injured as a result of an accident at work, or if they become ill as a result of their work. If your business is responsible, then your Employee Liability Insurance will cover the costs of claims made against you. It can also cover any associated costs, such as the legal costs in dealing with a claim. For most companies, Employee Liability Insurance is a legal requirement.
Your business cannot survive very long if your income stops. If an insured event occurs, which prevents your business from trading, business interruption insurance can help cover, or recover costs associated with lost income. It can even provide cover while you rebuild or relocate to another location, either temporarily or permanently.