Auto Insurance Quotes ~ Types of Business Insurance Policies : Generally when you seek to take out Business Insurance you will build a tailor made policy including all of the aspects that are of relevance to your business and the work that you carry out. A case study example is below.
Mr Fowler runs a small joinery business and has his own workshop, he employs 2 other people to assist him. He wants to know about the types of Business Insurance available to suit his business needs so he obtains a quotation where he may be asked:
- The category which best describes his business - Construction/Building trade
- The exact occupation within this trade - Joiner
- Does he have a secondary trade or occupation that he needs cover for - In this case no but if he was also to implement or fit his products in the homes of his customers he would need a different package to include this.
- Where exactly the business is located - address can be a factor that effects the premium
- What type of business is being run - Mr Fowler is a Sole Proprietor but he could for example be a partnership or a limited company
- What sort of premise does the business work from - As stated Mr Fowler has a dedicated workshop but he could work from home
At this point the nature of the cover required will need to be recognised.
- The level of public/product liability required - This is usually offered in set levels such as $1,000,000 , $3,000,000 , $5,000,000 , $10,000,000 , $20,000,000
- Additional coverages can be chosen by the applicant such as:
- Professional Indemnity Insurance
- Buildings Cover
- Equipment Cover, this could be tools or office equipment
- Stock, trade materials or customer goods
- Plant item cover whether your own or hired
- Protection against loss of revenue
- Trading interruption expenses
These are the basics and dependent upon the sort of business you run the questions will vary. The insurer will also wish to ask more in depth questions about you and your business and for each additional coverage you will need to chose an amount of cover that is required.
Below we have explained types of Business Insurance Policies that can be taken out on their own as opposed to as part of a package.
Employer's Liability Insurance Policy
As an employer it is important to have the correct insurance in place as you will be facing some sort of liability each and every day. Employer's Liability Insurance can protect you and your employees should any form of accident occur as a result of your employment. This type of insurance is mandatory for any business where one or more people are employed. If you are an employer and found not to have Employer's Liability in place you can be fined on a daily basis.
If any of your employees were to injure themselves or become ill in any way through carrying out duties through your employment they can seek compensation from you! By taking out Employer's Liability Insurance you can rest assured that these costs will be covered should any claim against you arise. Without this type of cover you could be faced with Legal fees that may cripple your business!
Employer's Liability Insurance can be taken out on it's own or as a combination of other types of Business Insurance, usually Public Liability Insurance.
Public Liability Insurance Policy
Public Liability Insurance is usually combined with Employer's Liability Insurance in Business Insurance Policy but can be taken out on it's own. The level of cover available depends on the type and size of business that you run. Public Liability Insurance cover's you business' legal liability for any loss, damage, injury or disease caused to a third party such as the general public or sub contractors. Obtaining a Public Liability Insurance quote on-line is very easy and every level of cover and additional option is displayed in this process.
Business Premises Liability Insurance
Premises Liability Insurance as it is referred to as in America covers the business against accident or injury to a client or third party that occurs on the business' own premises or any of their off site locations. This can cover for example a client tripping over and injuring themselves. The business will be liable for any claim made and will need insurance in place to pay the compensation claim or to pay legal fees should they contest.
Professional Indemnity Insurance
Professional Indemnity Insurance can be taken out if your business involves selling knowledge that you possess which could lead to you providing advice as a service.
Your business will be protected against compensation sought by a client should you have made any mistakes, found to have been negligent or if a product that your business has sold has not carried out the function for which it was intended for. Legal costs again are covered and depending on which insurer you apply to there may be a cap on the amount you can be insured for.
