What cover do I need?
Business professionals may have a number of different insurance requirements to cover varying types of risk they face in their work.
It is important to remember you should always check through your contracts with customers as they may stipulate some minimum levels of insurance cover.
As a minimum you should consider insuring your place of work and business equipment as well as choosing from the appropriate covers below.
Professional indemnity insurance
Professional indemnity insurance can protect you in situations when you make a mistake in your work, or if the advice you give to a client isn’t up to scratch.
If the client suffers financial loss as a result, you may be faced with a claim for compensation. Even if you feel you are not at fault, you could be faced with legal costs which could cripple your business.
Professional Indemnity insurance can help to cover this compensation and any legal costs incurred, meaning you can keep your business on track.
In deciding whether you require professional indemnity cover, you need to think about what could happen if something went wrong with one of your contracts and how much compensation your client might want in the event of things going completely awry.
Public liability insurance
Public liability Insurance protects you against claims for compensation from third parties who have been injured or whose property has been damaged because of your business.
This could be something as simple as you plugging your laptop in at your customer’s office, them tripping over it, injuring their ankle and then seeking compensation from you for their injury.
Public liability cover will pay for the compensation and legal costs arising from accidents like this.
When deciding whether you need this cover, think about whether your business brings you into contact with other people – do they come to see you, do you go to them? If you do you may find it wise to purchase this insurance.
Employer’s liability insurance
Employers' Liability Insurance is a legal requirement if you employ people, even part-time or on a short-term basis. If an employee suffers injury or illness as a result of their work, you may be held liable.
Depending on the type of injury or illness, compensation payments can be very large – employer’s liability cover will pay out for this compensation.
If you do have employees make sure that you include employer’s liability within your insurance portfolio.
Most professional businesses these days would find it difficult to trade without their computers, laptops and mobile phones. Think about whether you could afford the lump sum it would cost to replace your business equipment in the event of it being destroyed, lost or stolen.
It is also important that your sum insured is big enough to cover all of your equipment – not just the stuff you think is important. If you under-insure it is unlikely that you would get the full value of any items you claim for.
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