Business Insurance: Which Types Of Cover Do You Need?

It's fair to say whatever kind of business you have, it will need some type of insurance. But exactly what type will depend of various factors. Although insurers are often able to provide packages featuring the different types of cover you need, there is n

Here are some of the insurance options that might be suitable for your enterprise, depending on your line of business and specific circumstances.

### Contents and buildings insurance

It’s important to protect your business equipment with a contents policy. Even if you have a home-based enterprise, you might need extra cover for the specific equipment you use to operate your business. Also consider special cover for the items you take with you when you’re doing business outside of your place of work, such as laptop, tablet computer or mobile phone, etc.

If you own your business premises you should protect it with buildings insurance. You can also get cover for your fixtures and fittings.

### Public liability insurance

If you have clients and customers visiting you or if you visit them, you might benefit from public liability insurance. It covers you against compensation claims and legal costs in case a member of the public suffers injury, loss or damage as a result of your business.

### Product liability insurance

If your business sells products, it’s worth considering product liability insurance in case your goods cause injury or damage. You can be held responsible even if the fault lies with the manufacturer, but the appropriate cover can protect you against compensation claims and legal costs.

### Employer’s liability insurance

If you have any type of employee outside of your family then employer’s liability insurance is a legal requirement. You need cover worth at least £5 million, even if you employ only one person.

### Business interruption insurance

If your business were to be hit by fire, flood or theft, it might seriously disrupt your ability to carry on operating for an extended period of time. However, with business interruption insurance, you can be compensated for any loss of income until you get your enterprise up and running once again.

### Professional indemnity insurance

If you give advice to clients, provide professional services or handle confidential information and the intellectual property of others, you might need professional indemnity insurance. It’s especially suitable for businesses such as accountants, financial advisors, architects and designers. It can protect you against professional negligence, unintentional breach of copyright and confidentiality, loss of documents, data, goods or money and defamation. Some professional bodies stipulate it as a requirement of membership, and in certain lines of business you might find clients insist you have it before they will use your services.

### Goods in transit insurance

If your business involves delivering items to customers, you should give serious consideration to taking out goods in transit cover in case your products get lost, damaged or stolen on the way.

Whichever types of cover you opt for, shop around for the best deals and study all the details carefully.