Insurance for Businesses

There are several types of insurance required when running any business in the UK including insurance for business assets, people and liabilities.

Protecting against loss to business assets such as trading premises and contents is very important. An "all risk" policy will cover accidental damage as well as normal risks such as fire and flood. Even tenants should be aware of their requirement to hold appropriate insurance. Assets should be covered for their reinstatement value as opposed to their market value as it is essential to be able to return to normal working conditions as soon as possible. Stock, machinery and contents will be covered in a separate policy. Loss of profits can also be included in special policies to cover interruption to trading. A range of particular policies may be taken out depending on the nature of the business; legal expenses, travel insurance, goods in transit, credit recovery policies and motor insurance.

The health and life of the people involved in the business can be insured to protect the ability of the company to continue to trade should a key employee die or become unwell. Such insurances may also be a benefit to staff helping to attract high calibre candidates to the company. Life insurance, critical illness cover, income protection and private healthcare are all policies commonly taken out by business owners. Other specialist cover includes those for key employees, key shareholders and key partners.

Business owners have a legal responsibility to the general public, employees and customers to ensure that no injury occurs as a result of a breach of any duty of care or through negligence. Liability insurance is required to pay legal costs and compensation should such an incident occur. Employer's Liability Compulsory Insurance covers the situation where an employee is injured or made sick at work. Cover must be for a minimum of £5million. Businesses must display their certificate of insurance or they can be subjected to a fine. Public Liability Insurance covers damage or injury to customers or members of the public. There are other specialist policies that may be appropriate depending on the type of business being operated. These include: product liability insurance, professional indemnity insurance and directors liability insurance.

Advice can be obtained from insurance advisers. Brokers will advise on general and commercial risk policies and independent financial advisors will deal with life, health and liability categories.

The Financial Services authority helpline is 0845 606 1234 and further information can also be found on their website at http://www.moneymadeclear.fsa.gov.uk.

If you're looking for insurance cover for your business, business vehicles or business travel then you may find the following websites useful. The suppliers listed below all trade on-line, saving you valuable time in obtaining quotes and arranging insurance cover.

• American Express Travel Insurance - business travel insurance with discount for online purchases
• eCar Insurance - online car insurance with European cover and breakdown recovery
• eVan Insurance - buy, manage and renew van insurance online at competitive prices
• Insurance2Go - mobile phone insurance with worldwide cover from theft, loss, damage, unauthorised calls
• Insurance4carhire - car rental excess insurance as a cheaper alternative to rental company charges
• Worldwide Insure - annual and single-trip travel insurance for short-term and longstay travel