There are several forms of business insurance that are required by law, together with other policy types that are advisable in properly protecting any business.
Mandatory forms of business insurance include public liability insurance (PLI). This is designed to protect the general public and customers when they are on your premises. Inversely, it affords protection when you are carrying out business activities on their premises. Employer’s liability insurance (ELI) protects the business against the costs associated with any claims made by staff that become sick or injured during the course of their work. Finally, professional indemnity insurance provides some level of protection in the event of customer claims for negligence or poor advice.
Public liability insurance can sometimes cause a degree of confusion. The following key facts should assist in better understanding its purpose, scope and associated premiums.
This type of insurance covers the general public and any third parties who may enter your premises. It also protects you and your staff when working on third party premises, including work from home arrangements. PLI is mandatory only for certain types of businesses deemed to be high risk. It is worth speaking to an insurance advisor to determine whether your business falls into this category. Even if it doesn’t, premiums are competitive and it is usually worth considering PLI for peace of mind.
PLI covers damages and costs awarded to a customer or member of the public as a result of any damage to their property caused by the actions of your business or its staff. It also covers any injury that they may have sustained. This extends to associated legal fees, expenses and costs. Since liability may be substantial, it is essential that you consider suitable cover.
Other resultant costs may include hospital treatment and even the cost of ambulances. Few people realise that the NHS is entitled to recoup its expenses in certain circumstances. These costs can soon become punitive so it is well worth being insured against them.
Annual premiums are, primarily, based upon the nature of your business and its activity level. This is usually measured by turnover, although some insurance providers will use different metrics. For example, a restaurant might be measured against the number of covers. Similarly the number of guest rooms or conference seats at a hotel will be key factors in the final premium.
There are various warranties, exclusions and conditions that are routinely applied to PLI policies. It is therefore worth investing the time in speaking with a reputable advisor, accredited through the BIBA (British Insurance Brokers Association), in addition to comparing quotes online. In all cases, you should read the small print when taking out any form of insurance to pre-empt any unpleasant surprises in the event of a subsequent claim.
For an initial view and to research the product best suited to your specific requirements, it is invaluable to spend time online in order to compare the different insurance products available. Not only will this allow you to better understand the comparative costs but will also allow you to explore policy coverage and options.
The market is of a significant size and this type of insurance product is complex. It is worth carefully comparing policy elements when you’re requesting a quote for employers liability insurance.
As a business owner, it is vital to understand precisely what types of insurance are legally required in the context of your business. Not only will this safeguard your premises, customers and staff but it may assist in defending your professional reputation.
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