BUSINESS INSURANCE GUIDE
What Insurance Does My Business Need?
Quick Answer
There is no single business insurance policy that is right for everyone.
The cover you may need depends on what your business does, whether you employ people, where you work, whether you provide advice or products, the property and equipment you rely on, and the financial consequences if something goes wrong.
The best place to start is therefore not with a list of insurance policies, but with the risks your business actually faces.
WHAT SHOULD I CONSIDER?
Think about how your business operates day to day:
Do you employ anyone?
Employers' Liability Insurance will generally be a legal requirement.
Do you deal with customers or members of the public?
Public Liability may be important.
Do you provide advice, designs or professional services?
Consider Professional Indemnity.
Do you rely on computers, email or customer data?
Cyber Insurance may be relevant.
Do you own premises, stock, machinery or equipment?
These assets may need protecting.
Could a serious incident stop you trading?
Business Interruption should be considered.
Do you operate cars, vans or commercial vehicles?
You may require commercial motor or fleet insurance.
Are you a director or senior manager?
Directors & Officers or Management Liability may be appropriate.
Do you work at customers' premises or on construction sites?
Contractors can require additional covers for contract works, plant, tools and working away.
What Business Insurance Is Compulsory?
For most UK businesses employing staff, Employers' Liability Insurance is legally required, subject to certain exemptions. Other insurance may not be compulsory by law but can still be required under a contract, lease, finance agreement, professional membership or as a condition of working for a customer.
For example, a contractor may be required to carry a specified level of Public Liability Insurance before being allowed onto a site, while some professions are expected or required to maintain Professional Indemnity Insurance.
Different Businesses Need Different Cover
A consultant working from home has very different risks from a manufacturer operating machinery or a contractor working on construction sites.
For example:
Contractors and trades may need Public Liability, Employers' Liability, tools, plant and Contract Works insurance.
Professional and white-collar businesses may be more exposed to Professional Indemnity, Cyber and Management Liability risks.
Shops, restaurants and premises-based businesses may need cover for property, stock, liabilities and interruption to trading.
Engineering and manufacturing businesses can require property, machinery, Products Liability, Business Interruption and more specialist engineering covers.
Property owners and landlords may require buildings, Property Owners' Liability, Loss of Rent and specialist cover for vacant or unusual properties.
Businesses operating several vehicles may find a Commercial Fleet policy provides a more practical way of arranging their motor insurance.
This is why simply choosing a trade description from an online form does not always provide the full picture.
How Can Morris Perrin Help?
At Morris Perrin Insurance Consultants, we start by understanding the business.
We look at what you do, where you work, your employees, contracts, premises, equipment and other exposures before discussing the insurance that may be appropriate.
That might result in a relatively straightforward policy or a combination of different covers arranged around more complex business risks.
Not Sure What Your Business Needs?
You do not need to know the name of every insurance policy before speaking to us.
Tell us what your business does and how it operates, and we can help you identify the areas that need consideration.
Call Morris Perrin Insurance Consultants on 01252 299094 or book a consultation.
Reviewed by Jeremy Perrin, Managing Director, Morris Perrin Insurance Consultants Ltd.
You May Also Be Interested In
Public & Employers' Liability Insurance Guide
Understand the difference between PL and EL, when they may be required and what they are designed to cover.
Professional Indemnity Insurance Guide
For consultants, contractors and businesses providing professional advice or services.
Commercial Fleet Insurance Guide
For businesses operating multiple cars, vans or commercial vehicles.
Contractors Insurance Guide
Liability, contract works, plant, tools and other considerations for contractors and trades.
Property Owners Insurance Guide
Guidance for landlords, commercial property owners and property investors.
Cyber Insurance Guide
Understanding cyber risk, ransomware, data breaches and business interruption.
Directors & Officers Insurance Guide
How claims and investigations can affect directors and senior managers personally.