7. Insurance
The information on this page shows you which types of insurance cover you are required to have, as a business, and which are recommended. The cost of insurance is, of course, one more overhead for a business such as yours. You’ll need to set the effects of premiums on your current profits against the potential impact of various unforseen events. One way to consider the issue is to imagine yourself faced with a particular problem, for example a fire, a theft of computers, the illness of a key number of your team or the loss of something valuable. It is vital to protect yourself against it happening, whatever the cost. Our insurance problems specialists are used to dealing with all types and sizes of business. Your relationship manager can arrange for a no-obligation quotation to be provided.
Compulsory Insurance
Employers Liability Insurance - This is compulsory if you have employees (other than immediate members of the family) or if you are a limited company, cover is provided against your legal liability for bodily injury to your employees sustained while employed.
Motor Insurance - It is compulsory to have third party liability insurance for a vehicle covered by Road Traffic Act legislation. Vehicles can be a business asset and should be insured against material damage under a comprehensive motor policy. If you have a private car which is used for business purposes, even such as taking money to the bank, cover must not be restricted to social, domestic and pleasure use only. If either you or your wife/husband use a car for business, you must notify the insurers and ensure that they confirm that you are adequately covered.
Engineering Plant - The inspection of certain types of plant and equipment is compulsory. Lifting, pressure and electrical plant must be inspected at statutory intervals. An annual inspection policy or contract must be in force to comply with these regulations. Inspection contracts can not be carried out by the company who install or maintain the plant
Special Risks - There may be special risks which need to be covered for your particular type of business.
Recommended Insurance
Material Damage - Insurance should be arranged for business assets such as buildings, contents and stock against perils such as fire, theft, storm, flood, burst pipes, subsidence and other specified causes. Alternatively, cover can be extended to include accidental damage for wider protection.
Goods In Transit - Covers the carriage of business goods in transit by own vehicles, by carrier or sent by other means. (This cover is not normally covered under motor vehicle insurance policies).
Business Interruption - Provides cover for reduction in turnover or loss of trading profits following damage to the business assets at your premises. Cover is also available for damage at suppliers, or customers premises or at neighbouring premises preventing access to your own which affects your turnover of profit.
Professional Indemnity - Covers your legal liability for professional errors and omissions whilst carrying out your business.
Key Person Insurance - Helps to protect your business from loss of profit if a key employee dies or becomes seriously ill.
Public Liability - Covers your legal liability to members of the public for bodily injury or damage to their property arising from work that you are carrying out in connection with your business.
Share Protection Income - Helps to protect business continuity by providing funds to purchase the business interest of a deceased or seriously ill partner or director.
Money - Covers loss of business money for agreed limits whilst in transit, in the business premises whilst open, from a safe or overnight from your home or the business premises.
Products Liability - Covers your legal liability to members of the public for bodily injury or damage to their property arising from products supplied by you.
Loan Protection Insurance - Helps to repay loans or personal guarantees if a business owner dies or becomes seriously ill.
Pensions - Helps to reduce long term dependency on income from the business by creating a separate tax-efficient fund to provide income in retirement