UK Guide to Business Insurance
As a business owner, you have enough financial know-how to realise how important it is to protect yourself, your business and its assets with commercial insurance. The threat of natural disasters, hazardous accidents and an increasingly litigious society mean that, with so much personal investment, the question becomes: can you afford not to insure your business?
However business insurance is not just a sensible and prudent measure, it is in most cases a requirement of the law. As a business owner and employer, you have a legal responsibility towards employees, customers and the public. For example, nearly all employers are legally required to have employerís liability insurance of at least £5m.
Thatís not all: some of the basic categories of business insurance most business owners should be looking at include property and liability coverage; assets and equipment insurance; health and medical coverage; directors and officers coverage; key executive life coverage; business motor insurance; disability coverage and the more recent, and equally imperative emergence of website coverage.
While the list may look daunting, general commonsense advice applies: avoid the extremes many business owners fall into of either looking to get away with minimum coverage, or overpaying on policies that you donít need. The downfall of the first instance is obvious, but multiple policies with different brokers can too increase the likelihood of gaps in your coverage.
Secondly, talk to the experts before purchasing any policies. Make sure your insurance broker is knowledgeable and experienced specifically in business/ and or commercial insurance. Ensure that he is able to compare business insurance deals on a like-for-like basis. All brokers must now be regulated by the Financial Services Authority.
When you do have the appropriate cover for your business, make sure you review your policy regularly, to ensure that it continues to fit with any changes in your circumstances. If you have not done so in some time, schedule an appointment with your agent or broker to discuss it. While it may feel like a burden with more pressing matters at hand in the present, thereís always the chance that your insurance policy could become the most important investment you make in your business.
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