If you own or manage a business, large or small, you will need some form of insurance to protect your business against the various risks and potential multitude of claims your business will face.

Business insurance or business insurance as it is commonly known is a complicated area of ​​underwriting and because all businesses are different and face different risks depending on the nature of the business, insurance companies have introduced various insurance packages and coverages. combined policies. and commercial corridor schemes, to facilitate the process.

An example of a small business insurance package commonly sold online is the tradesman insurance package, which includes all the coverage elements required by a small business or self-employed tradesman, such as basic liability and tool theft coverages. .

Other trade-specific small business insurance packages that can often be obtained online are available for merchants, offices, doctors’ offices, hotels and guest houses, restaurants, taverns, and builders.

Large businesses will be offered what is known as a commercial package policy which has many different elements of coverage that can be combined to make a policy tailored to the business. Most large companies will require some degree of underwriting before underwriting the policy, which can often include a business site or facility visit, and for this reason, these larger types of companies generally employ the services specialized commercial insurance brokers.

Business Risks

The biggest risk a business faces is third party liability and the potential costs and damages a business could face if a claim were made against them.

All businesses are required by law to carry liability coverage, called employer’s liability insurance or EL, to protect their staff against all potential risks and accidents in the workplace.

Commercial liability insurance is usually sold as a package and will always include public liability, often known as PL, which protects the business against claims from the public while on business premises.

Another type of liability insurance called Product Liability is also available to businesses under a commercial liability policy that protects the business against claims for design or manufacturing faults in the product.

Company directors can also protect themselves against liability with directors and officers (D&O) insurance coverage.

Damage to property

Most businesses, large and small, will have facilities that need protection against building hazards such as fire and flood, and commercial property insurance is available to cover all building insurance risks. Similarly, commercial contents insurance is available for business premises that covers business and office equipment, including files and data processing, against common perils. For businesses that have inventory, this type of business contents insurance can be extended to cover risks such as spoilage and damage.

For the small business owner who works from home, these coverages are often available with strict indemnity limits, as a supplement to a standard buildings and contents policy. This type of coverage is often effective for self-employed individuals with only a computer and home office.

Business contingency coverage

One of the biggest problems facing a business is how to stay in business in the event of the worst, such as a fire destroying the facility. To deal with this, insurance companies have coined a cover called ‘Business Interruption Insurance’. Based on your annual turnover from previous years, this protection insurance covers your business against all losses caused by business interruption due to any of the risks mentioned in the policy and will pay on an indemnified basis for the coverage period. agreed in the policy. Most policies will also offer some type of alternative business accommodation to allow your business to continue while the premises are repaired.

Additional Business Risks

Because commercial insurance is designed to cover all classes of businesses, there are many commercial or business-specific coverages available that can be added to a combination policy. Examples of these coverages include loss of business license, glass coverage, goods in transit coverage, book debts, commercial vehicle insurance, carriers coverage, warehouse coverage, insurance for engineering and plant inspection services, and theft by part of the employees.

Outside of most package policies, there are additional risks, most often sold under separate policy coverages, that need to be considered to protect your business against all eventualities.

Examples of these are the coverage of the Mercantile Legal Expenses insurance that protects the company against employee claims for unfair dismissal and allows actions to be taken against suppliers.

Various business protection policies are also available, including Keyman insurance, which provides coverage against the loss of key people within your organization. Commercial mortgage protection provides a monthly payment for business premises in the event of an accident or illness. Group ASU policies are also available to protect your staff and employees.

Purchase of Commercial Coverage

Buying business risk insurance can be a daunting experience for the uninitiated small business owner and unless the risks are simple and can be underwritten online, it is recommended that all businesses approach the services of a broker. local or regional commercial insurance. Insurance brokers will not only be able to assess the full range of risks your business is exposed to and provide the correct levels of cover, but in most cases they will have unique local knowledge of the risks involved and be able to negotiate premiums that reflect the nature of the risks. Also, in the event of a claim, and since most businesses will face claims at some point in their business life cycle, the broker will handle all settlement negotiations with the insurance company and allow you to proceed with what is best for you. knows how to do: manage your business.