Business Insurance

Business Insurance Basics

If you own a business within the United Kingdom, it is normally necessary to possess some form of insurance policy. This is a rather broad section, as the categories and variants will depend upon the type of operations that you run, your equipment and how much the public is involved with your day-to-day operations. As an example, the owner of a construction company will likely require a much different plan when compared to the needs of a business which specialises in telemarketing or sales. Let us attempt to clarify the basics of business insurance by taking a look at the most common types of policies and some of their unique stipulations. We can then examine what are considered to be the top providers of 2016.

The Primary Types of Business Insurance

These policies will fall into three main categories. These categories are:

  • Business liability insurance
  • Property insurance
  • Worker's compensation insurance.

Let's now take a look at each one in greater detail.

Business liability insurance is considered to be the most basic plan available. This packages addresses any injuries or damages that are caused to a third party as a result of your operations. An example could be a slippery floor within a retail store causing a slip-and-fall injury to a customer. As opposed to having to pay substantial out-of-pocket costs, your liability insurance plan will cover any financial expenses up to a certain point. There are several addenda to this policy; primarily depending upon the unique needs of the organisation. Some variants include malpractice insurance (for the medical profession), errors and omissions insurance and automotive insurance for a vehicle that is associated with daily tasks.

A property insurance plan is intended to financially cover the policyholder in the event that third-party property is either damaged or destroyed as a direct result of a business. However, these plans are also available to the company itself and they can help save a good amount of money over time. Once again, there are several bespoke variants to take into account. Debris removal insurance, boiler cover, machinery insurance, tenant's insurance and fire insurance are some common examples.

Worker's compensation plans are the third common variety of business insurance. In the majority of cases, this package helps to provide financial remuneration to an employee for any on-the-job injuries or health issues are a result of his or her position. Falls,chemical burns and injuries that result from faulty machinery are a few examples in this case. This is also known as worker's liability insurance in some circles. It is important to mention that in the majority of instances, even part-time employees are protected under worker's compensation insurance within the United Kingdom.

There are still some exceptions to this plan. Domestic workers, independent contractors, those who do not reside in the UK and have worked for less than 14 days and anyone related to the employer are all exempt from this protection.

The Top Business Insurance Providers in the UK

A Handful of top business insurance firms includes:

  • Simply Business

Simply Business offers both public and employer's liability plans. Options include building, contents and professional indemnity clauses.

  • Hiscox

Hiscox provides a maximum liability coverage level of £10 million pounds. Legal expenses may also be chosen within this plan.

  • Direct Line

Public liability coverage of up to £2 million pounds and employer liability of £10 million pounds underscore this option. Extras include business interruption, contents insurance and legal expenses.

  • AXA Business Insurance

Tradesmen and professionals often choose AXA insurance plans. Employers liability as high as £10 million pounds alongside the coverage of additional legal fees are two hallmarks of this plan.