Commercial Insurance includes various types of business insurance, which can be arranged individually or often come under one policy. It protects your business against claims that can arise due to damage, loss, injury or even a death, brought by employees or a member of the public.
Note that The Lending Channel are not authorised to give advice on Commercial Insurance products but interested clients can be referred to a separate third party.
If you employ anyone, then you need to have employers’ liability insurance. It’s a legal requirement even if you only employ one person; and that’s regardless of whether you employ them on a full-time, part-time or casual basis.
The only exemptions are family-owned businesses that employ only close relations, organisations run through public funds, or businesses with no employees.
This covers you for any claims made by members of the public against your business that arise from a personal injury (even death), damage or loss to property that is connected to your business.
It should cover you whether you deal with the public from a business premises (whether that’s an office, shop, showroom, factory or even your home), when you’re out and about on business (such as attending a meeting or event), or if your business hosts events and activities.
If you are planning to organise any public event, and this is unusual for your business, then you can also arrange specific public liability cover for one-off events.
Don’t think that a claim against you will never happen. There were more than one million personal injury claims in the UK in 2011, according to official statistics. That figure is collated because the DWP operates a Compensation Recovery Unit, which can also require your business – if it is found culpable in a Personal Injury claim – to repay any injury-related benefit that the claimant received as a result of the injury.
All it takes for a claim to be made against your business is a simple slip, trip or a fall.
Commercial Motor Insurance
If your employees are using their own car in connection with their work, they are responsible for their own insurance. But if you operate vehicles of any kind under your business – delivery bikes, fleet cars, transit vans etc – then you must hold at least third-party cover as a minimum legal requirement.
Typically, many leases include a requirement for the tenant to cover the cost of internal and external repairs, and you can and should insure against specific types of damage, such as flood or fire risks. (If you rent your property, then buildings insurance itself is your landlord’s responsibility.)
If you own your own business premises, then naturally you need to be able to cover the cost of repairing any damage or rebuilding your business premises in the event of a fire or similar calamity. Your commercial insurance should therefore cover the cost of repairing or rebuilding any business-related premises.
Insuring leased equipment
You should also consider business contents insurance, to cover goods or equipment. In fact, if you lease any equipment, it might be a requirement that you insure the item of equipment, and this may be cheaper through your main business contents insurance policy than by taking out specific cover through the leasing company.
When it comes to insuring your stock, you should insure its value on the cost price, rather than its intended sale price.
Professional Indemnity Insurance
This is another protection that might benefit you, depending on the type of service you offer. However, this is generally arranged separately to commercial insurance packages. It is available from some of our panel.