The Insurance Policies Businesses Rely On

The Insurance Policies Businesses Rely On

When you run a business, insurance is a key consideration. It is an expense on the profit and loss account and something that can protect a business from potential ruin should the worst happen.

We shall then consider different types of insurances that businesses rely on for their peace of mind and survival. These will be the types of insurances that are well worth seeking out from online insurance providers like

Van or Car Insurance

Every business is likely to have at least one car or van that they need to insure. If you have a business where several drivers need to be insured for the same vehicle, then it is useful to know that an “any driver” policy would save you by naming individual drivers. This can be useful where a company has a high turnover of staff or where vehicles are shared a lot to move goods around the country and abroad.

Motor Trader Insurance

If as part of your business, you look after the vehicles of others then the chances are you will need at some point to drive them. This is whether you are a salesman delivering a car to a customer or a mechanic carrying out an MOT and offering to collect and deliver a vehicle as part of the service. The way to deliver more of a service is to have motor trader insurance which allows a business to drive vehicles on the public road that are owned by a customer. This must be one of the few times that you can insure something you do not own.

Business Property Coverage

Businesses can take out business or commercial contents insurance (also known as business assets insurance) to protect the equipment and possession inside their work premises. So, if you have furniture, tools, and equipment that would be expensive to replace, it is worth having them insured. Situations such as theft, floods, or fire, could take away or damage your valuable assets in an instant. It is not mandatory to have insurance cover for your property or its contents under any UK law but it is something of a protective approach that could save your business from ending up in a position where it has no money to rebuild itself back from nothing.

Liability Insurance

We are all liable to someone for something but we do not want it to end up a substantial payment that is due to someone claiming compensation off us. This is what can happen without public liability insurance. No longer, though, does a company have to worry about being sued by members of the public because something fell off their building and injured a customer when they can be insured for it. Also, as something compulsory anyway, cover for employer’s liability will similarly protect employees.

Product liability insurance will transfer the risks to insurers associated with product defects. These policies will also include the expense of court cases.

Business Interruption Insurance

This is a useful insurance policy to cope with the unforeseen. A business can be compensated by an insurer should a loss of sales or profits occur because they are unable to trade or operate for whatever reason. It is protection when something outside of a business’s control threatens to affect cash flow and make staff redundant. It will fund a period of inactivity for a business, where criteria under the policy are met, and so keep a business running for the future.

Professional Indemnity Insurance

Professional indemnity or PI insurance allows an insured to claim the compensation they have had to pay to a third party. This includes cases where there has been a breach of confidentiality, bodily injury, professional negligence, damage to property, acts of defamation of character, or property damage. Legal costs can also be claimed.

Cyber Insurance

If your business involves storing customer information on computers, then you can take out cyber insurance to protect yourself. This will cover your business’s liability where a data breach has resulted in sensitive customer information finding itself in the wrong hands. This might relate to credit card numbers, account numbers, or health care records.

Credit Risk Insurance

Where a company has debtors, credit risk insurance will cover the risk they face should those that owe money be unable to clear a debt due to disability, death, or insolvency. It is a peace of mind to know that there is no amount of money that a company will not be able to have coming back in. So, if you do not get paid straight away for the goods that you supply because you offer customers credit, this kind of protection is well worth considering for your financial protection.

Key-man Insurance

This does not refer to the man that unlocks the door to premises but the man without which a business would struggle to survive. It might seem morbid to some, but you can take out a kind of life insurance policy that will provide a death benefit to the business in the event of its owners or a significant employee passing away. It is not a common insurance policy that is available but something that would allow a business to re-build itself with financial help.

So, lots of ways that a business can be insured, and all of them to make sure that a company does not find itself in financial difficulties in the future. Pretty much any object, situation, or event can be insured, from vehicles on motor trader insurance policies to those who run the company leaving us early.

1 thought on “The Insurance Policies Businesses Rely On”

  1. Pingback: The Insurance Policies Businesses Rely On | Magnolia Projects

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