What types of business insurance do I need?Chris
Business insurance comes in a number of variations, and the policies you’ll need will depend on your business and how you run it as well as the provider you choose. Most offer cover for the following:
- Public liability: Public liability insurance covers you for the cost of compensation you might have to pay if a member of the public is injured or their property is damaged as a result of your business’s operation
- Employers’ liability: As mentioned above this is a legal requirement if you employ staff, and it’ll cover you if your employees become injured or ill or have their property damaged as a result of the work they do for you
- Professional indemnity: Professional indemnity policies protect you if you or an employee makes a mistake with your work and as a result your client or the business you’re working with lose money and sue you
- Business buildings: Business buildings insurance can be helpful if you have a specific business premise, such as an office or shop, as well as if you work from home. It can cover you for damage caused by floods and other natural disasters, depending on the details of your policy
- Business contents: A business contents policy covers any tools or office equipment in your business premises if they’re damaged, stolen, or lost
- Product liability: Product liability insurance is cover for when a customer is injured or suffers damage due to a faulty product you’ve supplied – you could be liable even if you didn’t manufacture it
- Business interruption: With business interruption insurance you’ll be covered for the cost of getting your business up and running again if it’s disrupted by an insured event, such as flooding or fire
- Personal accident: Personal accident cover means your insurer will pay out for things like medical costs or loss of income if someone dies or is seriously injured at your work premises
- Legal expenses: A policy for your business’s legal expenses means you’ll be covered for the potential cost of legal action if someone brings a case against you or vice versa
- Cybercrime: A policy that’s growing in importance in the modern age, cybercrime insurance protects you if your business falls victim to cyber criminals
Do I need business insurance?Chris
While employers’ liability cover is the only type of legally required business insurance, some business regulators may also want you to have certain policies in place before they let you practice. For example, you might have to take out professional indemnity insurance if you’re a solicitor or an accountant.
If you work with other companies or clients, they may also request that you’ve taken a particular level of cover before signing a contract with you.
I have Business Interruption insurance, am I covered?Chris
The vast majority of organisations do not have cover for coronavirus under their Business Interruption insurance. Not all insurance policies are drafted clearly, and the best way for us to confirm whether you are covered or not is to contact us. Contrary to what you may read on social media or even via trusted news sources, the change in the Government’s stance to “lockdown” will have no effect on the majority of insurance policies. Some insurance policies do have an element of cover, but this is likely to be limited and is mostly the consequence of poor policy drafting rather than a specific decision to provide insurance cover.
Owing to the ongoing confusion around some of the more poorly drafted policy wordings and the interpretation of some policies by insurers who deny there is cover when this is questionable at best, the Financial Conduct Authority (FCA) has now decided to test the insurer’s arguments in court, to create a common law and transparent approach to the key arguments. We would expect this to only impact a small number of policyholders, but we welcome the FCA’s approach and hope this work will be completed urgently.