Does Your Business Need More Insurance?
There’s no doubt that in business (and in personal life), insurance is something we love to hate purchasing. It always seems that there are more things that need insuring and more money to spend on policies. When you are in business, there are several types of insurance that are very important and others that should be considered. So does your business require more insurance?
Compulsory and Non-Compulsory Insurance
According to guidelines for businesses in Northern Ireland, there are three main types of compulsory insurance that your business may need, depending on what it does:
Employers’ liability compulsory insurance or ELCI (usually £5 million cover) – this is needed if you have any employees
Motor insurance – this is needed if you have vehicles of any kind that are owned by the business
Professional indemnity insurance – this is needed for businesses such as law or accountancy to cover legal liability for losses suffered by clients due to negligence
Then there are other types of insurance that may be required, depending on what the business does. A classic example is buildings and contents insurance to cover the business property and any equipment within it owned by the company. Separate equipment insurance might be required for example with some specialist construction equipment and goods in transit insurance may need adding to motor insurance if you transport business goods or equipment.
Other Types of Insurance to Consider Include:
Health insurance for owner/manager
Life and health insurance for staff
Business continuity insurance
Public liability insurance
Product liability insurance
Legal expenses insurance
How to find the right policy
One of the most difficult parts with all of this is finding the right policy for your business and understanding what cover it offers to avoid doubling up between policies with numerous sections. There are a number of insurance brokers across Northern Ireland who can offer their services to help you get the right policies or you can contact the insurer directly. If you use a broker, make sure they are a member of the ABI – the Association of British Insurers.
If your business is one operated from your home and you don’t have any employees or vehicles, then the amount of cover you need is likely much less. You may need public liability if anyone visits your premises regarding the business and you will want cover for a business equipment as this won’t be covered by your normal home insurance in many cases.
Keeping Costs Down
Businesses will always want to keep costs down but also ensure that you have all the coverage that you need. Make sure you work with an approved company or broker to get your cover and look at areas such as building security to see if this can reduce buildings insurance costs or limit the drivers on motor policies. Also, check the levels of cover and any areas of overlap while assessing your business to ensure you have enough cover but also aren’t paying for more than you need. That way you have the cover required without paying out more than you need to.