What Type of Business Insurance Might You Need?

Every business will require a different insurance policy in order to cover the specific needs in that line of work. Moreover, this policy should include protection for various legal liabilities, from the welfare of employees and customers to the actual business workplace.

For instance, do have expensive equipment on which your business depends to generate profit? Maybe you rely on a third party to provide some kind of service to help run your business? Do you have members of staff or do you run this business by yourself?

Business insurance should take these things into account and cover your business against whatever risks that can potentially disrupt or delay your daily operations.

But that's just part of the story...

A Quick Word About the Different Types of Business Insurance

You will find a long lineup of insurance options for your business and this is often the tricky part - identifying which policies are relevant to your needs. As an example, medical malpractice insurance covers he cost of legal fees when a patient suffers mental of physical harm as a result of omission or neglect by your practice. Alternatively, product liability insurance will cover a business that produces or designs physical products, while commercial building insurance is for landlords who make money as a result of renting out their property. Needless to say, there are too many to mention.

With this in mind, here are some of the most common types of business insurance to consider:

What are the Most Common Types of Business Insurance?

Employers' Liability Insurance

If you employ a member of staff, even just one person, you are legally required to have employer's liability insurance. As a rule, this type of business insurance will cover the business against any compensation claims in terms of damage or injury to your customers or suppliers. Liability insurance will also cover costs associated with these claims such as legal expenses.

Professional Indemnity Insurance

If the business provides professional advice or services to another business, you will need indemnity insurance. Simply put, this type of insurance protects your business against any legal costs that you might incur during the process of defending your actions. In case you might be asking yourself, this could refer to the likes of accountants, architects or quantity surveyors.

Premises/Office Insurance

If you have an office or premises for the business, you will need protection against potential costs associated with fire, theft or accidental damage. For some, this might be a small warehouse or maybe a shop, restaurant or facility of some kind. In the case of renting a property, consult the landlords and when working from home, you might check if your home insurance policy is adequate.

As every business is different, it's important to do your own due diligence and seek advice when it comes to the specific business insurance you might need. And it's true, insurance can seem like an invisible expense at times but as much as you don't expect these incidents to happen - they do!