Your Business

You’re a sole trader, limited company or partnership in a professional occupation such as a business consultant, accountant, architect or graphic designer. You may have business premises and employees working for you.

What Insurances should I consider?

Professional Indemnity Insurance

If your business gives advice, or offers a professional service, you should consider taking out Professional Indemnity Insurance. Many professions, such as architects, solicitors, insurance brokers and financial advisers are required to have Professional Indemnity cover as a regulatory requirement.

Professional Indemnity insurance protects your business against claims for loss or damage by a client if you are negligent or make a mistake in the services that you provide for them. This may include claims for professional neglect, libel and slander, or breach of confidentiality. Legal costs are also covered.

Public Liability Insurance

As a business owner or employer, you have a legal responsibility towards your employees, customers and public. If members of the public visit your premises or you go to theirs, you should consider Public Liability Insurance (PLI). Some customers or clients may ask for proof of adequate PLI before they will work with you.

If a member of the public is injured on your property you may be held responsible. Public liability insurance is designed to cover any awards of damages given to a member of the public who has suffered injury or property damage caused by you or your business, and to pay legal costs in defending the claim, and the legal costs of the claimants if you are found to be at fault.

Policies are generally tailored to an individual business and rated on an estimate for the business activities. For many businesses this will be the turnover, although other factors may be considered, such as your claims history and approach to risk management.

Employers' Liability Insurance

Employers are responsible for the health and safety of their employees while they are at work. By law, an employer must have Employers Liability insurance and be insured for at least £5 million. Employers Liability insurance must cover all employees in England, Scotland, Wales and Northern Ireland.

Employers' Liability insurance enables businesses to meet the costs of damages and legal fees for employees who are injured or made ill at work through the fault of the employer. The NHS can also claim the costs of hospital treatment when personal injury compensation is paid.

You must be insured for at least £5 million, although in practice most insurers offer cover of at least £10 million. However, you should look carefully at your risks and liabilities and consider whether you need more insurance cover; bear in mind that the £5 million minimum level of cover includes costs, so you may wish to purchase cover of more than this. The HSE is responsible for enforcing the law on this cover, and you can be fined up to £2,500 for each day that you do not have appropriate insurance.

Product Liability Insurance

If your company provides any products to the consuming public, which could - even in very rare cases - cause damage to a person or property, then you should seriously consider Product Liability insurance.

A properly structured Product Liability Insurance policy protects you against safety claims, manufacturing quality defects, spoilage costs, legal defence costs and medical costs. Bear in mind, though, that it will not protect your company against claims for the supply of poor quality products or poor services, so you should ensure you have rigorous quality control systems in place to ensure your products meet certain standards.

The premiums on Product Liability Insurance are based upon the type of product, volume of sales, and the role of the insured in the process. A quality control system that ensures your products are safe, fit for purpose and meet required industry standards will cut the cost of your premiums. This demonstrates that you are taking responsibility for your business operations seriously, in addition to having insurance in place.

• Business Equipment Cover
  

  For essential equipment such as laptops and PDAs while away from the business premises.

• Personal Accident
  

  To provide weekly benefits in the event of an occupational injury.

• Motor Insurance
  

  If you need to use a car in the course of your business.