What Insurance Do You Need For Your Business?
As a business owner, it’s essential to protect your company from potential risks and liabilities. One way to do this is through business insurance coverage. However, with so many insurance options available, it can be challenging to determine which policies are necessary for your specific business needs. In this article, we’ll take a look at the various types of business insurance you may need to consider.
As a professional accounting and bookkeeping company based in Oxford, we understand the importance of being protected with the right business insurance. With years of experience working with businesses of all shapes and sizes, the accounting team at Joanna Bookkeeping knows that each company has unique needs when it comes to business insurance. That’s why we’re dedicated to helping business owners understand their insurance options and choose the right coverage to protect their assets, employees, and reputation.
Let’s have a look into the various types of business insurance available.
Public Liability Insurance
Public liability insurance is a type of business insurance coverage that provides financial protection to businesses in the event that a member of the general public becomes injured or suffers property damage as a result of the business’s activities, and is designed to protect businesses from costly legal claims and help them maintain their financial stability.
Public liability insurance generally covers a wide range of expenses associated with claims made by members of the public, including:
➡️ Medical expenses
➡️ Loss of wages
➡️ Damage to property
➡️ Legal fees
Professional indemnity insurance
Professional indemnity insurance offers financial protection to businesses and professionals when a client or customer suffers a financial loss as a result of their professional advice or services.
Professional indemnity insurance covers the types of expenses that come with claims made by clients or customers when it comes to things like:
➡️ Legal fees
➡️ Damage to sales
➡️ Damage to reputation
➡️ And other costs associated with resolving the claim
In the UK, accountants, financial consultants, IT consultants, and healthcare professionals are all likely to need professional indemnity insurance due to the requirements set by their respective industry bodies.
Cyber Liability Insurance
With the increasing reliance on technology, businesses face an increased risk of cyber-attacks and data breaches. Cyber liability insurance provides protection against the costs associated with a data breach, such as:
➡️ Notifying affected customers
➡️ Security monitoring services
➡️ Legal fees
➡️ And other expenses
If your business collects sensitive customer data, such as credit card details or other personal information, cyber liability insurance is essential to protect your business from potential financial losses.
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Commercial Auto Insurance
If your business owns or operates vehicles, commercial auto insurance is a must-have. Commercial auto insurance provides businesses with protection against damages or injuries that may occur as a result of a vehicle accident involving your business’s vehicles. This type of insurance can also cover damages to other vehicles, property, or injuries to other drivers or passengers involved in the accident.
Property Insurance
Property insurance covers your business’s physical assets, such as:
➡️ Buildings
➡️ Equipment
➡️ Inventory and supplies
against damage or loss due to fire, theft, vandalism, or other events covered on your policy. This coverage can be critical for businesses that rely heavily on physical assets, such as retail stores, warehouses, or manufacturing facilities. Property insurance can also include business interruption coverage, which provides compensation for loss of income and other expenses if your business is unable to operate due to a covered event.
Employers’ liability
Employers’ liability insurance provides financial protection to businesses in the event that an employee becomes injured or ill as a result of their work. Under UK law, all employers are required to carry employers’ liability insurance if they have one or more employees, including part-time or temporary workers. This coverage is designed to provide financial support to employees who suffer injury or illness due to work-related activities or conditions and to protect employers from potentially costly legal claims.
Employers’ liability insurance can cover a wide range of expenses associated with employee injuries or illnesses, such as:
➡️ Medical expenses
➡️ Loss of wages
➡️ Legal fees
This coverage may also extend to cover damages resulting from claims of negligence or other wrongdoing on the part of the employer.
Business Interruption Insurance
This is a type of insurance that covers businesses for losses incurred due to some type of disaster and covers unexpected interruptions to their operations. This can include events such as fire, flood, or other disasters, as well as forced closures due to government regulations or other external factors. Business interruption insurance typically covers things like:
➡️ Loss of income
➡️ Damage to stock
➡️ Expenses related to temporary relocation or setup.
It’s an important type of insurance for business owners to have, as unexpected interruptions can have a significant financial impact on a business’s future.
It’s easy to get caught up in the day-to-day operations of your business and overlook important legal requirements such as business insurance coverage and if you are adequately covered. But, neglecting to have the right insurance policies can leave your business vulnerable to significant financial losses and legal liabilities.
Choosing the right insurance coverage for your business can be a daunting task. However, by understanding the various types of coverage available and assessing your business’s specific needs, you can make informed decisions about which policies to purchase. Remember that the costs associated with potential claims or lawsuits can far outweigh the costs of insurance premiums. Therefore, it’s always better to err on the side of caution and ensure that your business is protected.
You can purchase insurance for your business directly from a particular insurance company or by using an insurance broker. An insurance broker has access to various insurance companies and can provide you with different quotes. Policy Bee is an insurance broker specialising in insurance for small businesses. They cover sole traders, limited companies and freelancers. You can access Policy Bee insurance via this link (A little disclosure: if you click on this link, find something you like and buy it, we may make some cash. Don’t worry, you won’t pay any extra – sometimes you might even get a tasty discount or a nice reward by using our link. It’s a win for us and a win for you too! And if you become their client, you may have the same opportunity to earn something extra.).
Don’t hesitate to contact the Oxford-based accounting team at Joanna Bookkeeping. We can help you with bookkeeping, VAT returns, annual accounts and other accounting tasks. Just send us an email or book a consultation and see how we can help you.
Your Accountant in Oxford
Oxford Office
Joanna Bookkeeping
The Wheelhouse Angel Court
First Floor, Angel Court
81 St Clements St
Oxford
OX4 1AW
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joanna@joannabookkeeping.co.uk
01865 591952
