Small business insurance can prevent you from going out of business
At the end of 2003 there were 4 million enterprises in the UK, with over 99% of these classified as small businesses with 0 to 49 employees. With so many small businesses in existence it is no wonder that commercial insurance companies now consider such businesses to be a lucrative target market and have developed a range of small business insurance products to suit them.
What would you do if you went to open your shop or office in the morning only to find the door smashed in and the majority of its contents stolen? What if your company prepared food and you were the cause of an outbreak of salmonella? How would you cover the costs of replacing stock or claims against you? So many small businesses have such small cash flows that if you were not insured and any of these incidents happened to you, it would probably force you to shut down. That is why business insurance is available.
What types of small business insurance are available?
Businesses require a multitude of different insurance policies to protect the company, its buildings, its employees and its vehicles. Here is a summary of the main types of UK business insurance that are available:
| | Business insurance – if you own a business premises such as an office or a shop you can insure the building and contents against a wide range of perils including fire, theft and vandalism. If you lease a building you can just cover your business contents. You will find that insurance companies provide packaged products that will include public liability insurance, product liability insurance and employer’s liability insurance as well. These are discussed in more detail below.
Professional indemnity insurance – insurance designed for companies such as I.T consultants or marketing consultants. I.e. those companies that give advice. The insurance company will pick up the costs of any legal battle you have and any compensation that is awarded if the third party wins the case.
Liability insurance – liability insurance protects companies against any claim of loss made against you by a third party. Protection can be arranged for public liability, products liability and employer’s liability. The insurance company will pick up the costs of any legal battle you have and any compensation that is awarded if the third party wins the case.
Commercial car and commercial vehicle insurance – as with a standard car policy a commercial or business vehicle such as a car or van can be protected against loss, damage, fire, theft, third party liability and damage to their vehicle or property. The level of cover you receive depends on the policy you choose. |
Where can you get small business insurance from?
Less than a decade ago 100% of all business insurance transactions had to be made through a broker; there simply weren’t any companies that offered business insurance direct. With the advent of direct personal insurance products and the success that has been seen in that market, it hasn’t taken long for business insurance companies to start catching up. Invariably, small business insurance policies tend to be more complicated than personal policies such as house insurance, but some companies offer you the chance to quote and buy online. It will only be a matter of time before the online choice expands considerably!
