There are different types of business insurance policies or covers, and you need to choose the right one that will suit your small business appropriately. If you are looking to know the types of business insurances available in the market to decide the one that you need, continue reading this blog.
Public Liability Insurance: This business insurance is a must have for the businesses that interact with the public. This insurance is designed in order to cover any compensation that is claimed during situations such as accidental injury of employees or someone or damage caused to the property of the customer.
Product Liability Insurance: This policy is similar to the public liability insurance. The difference between the two is that the public liability policy covers claims due to the damage or injury caused to someone in the public. In product liability insurance, the damage or injury is caused by your business’ product. It should not be treated as a warranty that comes along with the product as it will not cover if your product does not work as intended.
Professional Indemnity Insurance: This type of insurance is important if you are involved in giving professional advice or services to your clients. This is a must have cover for the professionals such as IT contractors, management consultants, architects and accountants. If your client faces a financial loss after following your advice, the professional indemnity cover will handle the compensation claims made against you.
Employers’ Liability Insurance: This policy covers you against the claims that are made by your staff due to illness or injury that is believed to have been caused from their work or due to the workplace. There are notable exemptions from this coverage. For instance, if your close family member has been employed in your business, you cannot be forced to have this policy.
These are the major cover types that are available in business insurance. Basically, the insurance requirements of each business depend on the nature of the business. It is important to have a tailored cover that suits your business including turnover, office equipment, buildings and so on. You need make the choice appropriately.