Business insurance can be complex, due to this we’ve created a useful list of frequently asked questions.
Q – “What is business insurance?”
A – Business insurance is an umbrella term used to refer to a range of insurance policies. All businesses require business insurance, however, the type of cover they need will vary depending on the nature of the business.
Typical business insurance products cover:
Public / Products Liability, Employers’ Liability, Professional Indemnity, Business Interruption, Stock/Contents/Buildings, Goods in Transit, Legal Expenses etc
Q – “How much does business insurance cost?”
A – The cost of business insurance varies from business to business. You may need to take out different types of covers or you may just need basic cover. Generally, insurance can start from as little as £100. However the more you need to insure and the more complex your business, then the more expensive your insurance is likely to be.
Whilst some insurance policies will be a legal requirement of running your business, it is also worth considering the cost to your business of a claim in the event you were not covered by the appropriate insurance policy.
The most important factor is to trust in your insurance broker, as they will source you the most suitable policy for your needs.
Q – “Why should I use an Insurance Broker?”
A – Business insurance can be complex and confusing. Getting it wrong can have serious consequences for you and your business. An insurance broker knows exactly what to look for. They understand the jargon and know their way around the small print
At East Yorkshire Insurance Brokers we have the knowledge, skills and insurer relationships to ensure you’re cover is correct and remains competitive.
Q – “Why do I need Public Liability insurance?”
A – As a business you are liable for any damages caused to third party property as well as injuries caused on your business premises.
Q – “What is Directors & Officers Insurance”
A – As a director or officer of a business you can be held personally liable for your actions, this could result in expensive legal costs and awards to the third party.
Q – “What insurance does a landlord need for a residential or commercial property?”
A – As a landlord you will require buildings insurance for your property as well as property owner’s liability for any injuries or damages caused to third parties. You may also wish to insure against loss of rent and legal expenses. We can talk you through the options available.
Q – “I run a not-for-profit organisation with volunteers, do I need Employers’ Liability?
A – Yes, voluntary organisations are obliged by law to have employers’ liability insurance. Employers’ liability covers volunteers who are injured or become ill at work.
Q – “I work from home, what insurance do I need?”
A – If you run a business from home your insurance requirements are still very similar to those who have their own business premises. You will require public liability cover in case anyone is injured whilst visiting the premises or if you damage third party property whilst visiting a client. If you have staff you will require employers’ liability insurance. You may also have stock and business contents that you need to insure.
Q – “What is business interruption insurance?”
A – If a business suffers a material damage claim e.g. fire or flood it is likely they will be unable to operate for some time. A business interruption policy covers you for your lost earnings during this time. Alternatively an office based business may just need cover for ‘increased cost of working’ to cover additional expenses for new I.T. equipment or perhaps temporarily re-locating.
Q – “Why do I need Professional Indemnity Insurance?”
A – If your business provides advise e.g. Accountant or I.T. services you need to insure yourself against errors, omissions and negligent acts. You may not intend for this to happen but if a third party takes civil action against you a Professional Indemnity policy will cover your defence costs and any associated awards to the third party. This is applicable to all business who provide a service based business.
Q – “I’m opening a shop, what type of Insurance do I need?”
A – Opening your first business premises can be daunting and the last thing you want is to not be insured correctly. You will need public/products liability, if you employ staff, you will need employers’ liability and you will also want to insure your stock and general business contents. You may also want to consider business interruption, goods in transit and legal expenses. We can discuss the options with you and explain the scope of each type of cover.
Q – “What is Cyber Liability?”
A – More and more businesses are suffering from Cyber attacks resulting in data breaches. Following a breach a cyber liability policy will cover your investigation costs, applicable legal fees as well as covering potential ransom demands, data retrieval costs and the general costs of informing your customers of a breach.