What Type Of Insurance Does My Business Need?

When you’re running a business, you might encounter some unexpected losses, whether because of equipment damage or someone getting injured in your workplace. Situations like these are where business insurance comes into play.

There are two main types of business insurance that you can have: public liability insurance and employers’ liability insurance.

But these two types of insurance aren’t the be-all and end-all. There are many other types you can choose to have as optional extras to protect other aspects of your business.

So let’s take a look at the different types and what they mean for you.

Public liability insurance

If your business comes into contact with members of the public, this is the way to go for you. With public liability insurance, it doesn’t matter whether your contact with the public is at your workplace or elsewhere; your business is protected either way.

You will be protected against injury or damage claims made by customers, clients, suppliers and other third parties.

Employers’ liability insurance

In most cases, if you employ staff, you’re legally required to have employers’ liability insurance.

Your business will be covered against claims made by staff members for injury, illness or damage that occurs as a result of their work.

Professional indemnity insurance

If you offer advice to other businesses, this is the most important type of insurance you can have. It protects you if you make a mistake in your work that leads to your client losing money and suing you for damages.

If you work within certain industries, such as a surveyor, your professional body may require you to have professional indemnity insurance.

Business interruption insurance

If your business is interrupted by something outside of your control, such as a flood or fire, business interruption insurance allows you to get back on your feet.

For example, suppose you lose equipment as the result of a fire in your workplace. In that case, business interruption insurance covers your consequential loss of revenue, as long as your contents are also insured.

Business contents insurance

You can protect the contents of your workplace, such as your equipment and tools, against damage, destruction, loss or theft. If anything happens, it can cover the cost of replacement or repair.

Business buildings insurance

It’s all well and good protecting your equipment, but what if something happens to the building itself?

Whether you work from home or have a separate workplace, having business buildings insurance in place should be a priority.

If you’re renting a space rather than owning it, check with the landlord to see what’s already covered.

Cyber liability insurance

All the data your business holds could become the target of cyber-crime.

Cyber liability insurance protects you by covering your business for data breaches and cyber-attacks, and the damage they can inflict.

If you are attacked, it can also cover any legal claims and compensation costs that arise.

But which insurance do I need?

This isn’t a full list of all the different types of business insurance available. What your business will need depends on the type of business you’re running, the only one which is a legal requirement is employers liability insurance; all other types are optional.

We recommend seeking professional advice if you're unsure what you need.

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