From large multinational corporations to fledgling start-ups, businesses across the world are attempting to reign in their budgets in order to remain afloat during the current economic recession. However, in the flurry to cut costs, it’s possible that some corporate priorities may fall by the wayside. Business insurance, for example, is in danger of becoming one of the great casualties of the downturn, as corporations forgo certain levels of cover in order to reduce the premiums they pay.
However, whilst periods of business uncertainty can be the ideal time to assess whether you’re getting the most from your current business insurance provider, actually downsizing the level of protection surrounding your firm is unlikely to be the wisest economic move – particularly if you’re faced with a large scale data theft or a legal battle with a former employee. Business liability insurance in particular is something that companies need to maintain; not only is this a UK legal requirement but it’s also a crucial safeguard in an unpredictable economic climate.
There are several components to consider when building up comprehensive business liability insurance, the most important of which is arguably employers liability insurance. This type of cover makes up the cost of damages or legal fees that may have to be paid if an employee falls sick or suffers an accident due to employer negligence. Employers liability insurance must cover all your employees in England, Scotland, Wales and Northern Ireland and each employer must be insured for at least £5 million.
Public liability insurance is another paramount component of business liability cover if members of the public or customers are allowed on to your premises. This covers damages your firm may incur should a member of the public suffer an injury caused by you or your business, including legal fees and hospital costs. Product liability insurance, on the other hand, applies to any physical products that are sold by your company. It’s crucial to remember that you’re legally responsible for any damage or injury that a product supplied by your firm may cause; this type of insurance covers you for any damages that may be awarded to successful claimants, as well as hospital treatment costs the NHS is entitled to recoup.
Other types of cover that may be included within business liability insurance [http://uk.insurancewide.com/insurance/business/guides/liability/] includes insurance against pollution damages, professional indemnity insurance and tax and VAT investigation insurance. However, depending on the size of your business and the services you offer, it’s possible that you may not need all of these safeguards.
If in doubt, it’s important to seek specialist advice before purchasing business insurance. This will help you reduce any unnecessary aspects of your business liability cover – for instance, if you only employ close family members or your firm is not a limited company, you may not need employers liability insurance. What’s more, if your business liability insurance policy is up for renewal, insurance comparison websites and resources could be invaluable in helping you find a new deal – so you could lower your business liability insurance premiums without compromising on the level of cover you enjoy.