Business Insurance: a buyers' guide

Broadly speaking, there are three main types of business insurance cover:

• Business insurance that protects against loss or damage to your business premises, equipment and stock.
• Business insurance to cover your legal liabilities as an employer or if your business causes damage or harm to a third party or their property.
• Business insurance that protects you against the financial consequences of serious illness, injury or death.

• Just as you protect your home with building and contents insurance, business insurance helps you protect your business premises and contents against a range of mishaps, including fire, lightning, accidental damage and theft.
• All risks business insurance gives wider cover, including accidental damage. Make sure your premises have enough business insurance to cover the cost of rebuilding—not just the market value.
• You can insure the contents of your business premises, including stock, business equipment and money.

• If you are an employer, even if you are only a small business with one or two employees, you must have employer's liability insurance to cover injury, illness or death of an employee sustained during the course of their employment.

• Public liability insurance will cover your legal liability to pay damages if someone other than an employee is injured or killed, or their property is damaged, as a result of your business.
• If you make, sell or repair products, then product liability insurance will protect you from being held legally liable for any damage or injury arising from a defective product.

• You can take out business insurance to compensate you for any loss of income that arises following damage to your premises that disrupts your business.
• If you run a small business it is wise to take out business insurance in case you cannot work. Personal accident and sickness insurance pays a cash benefit if you are unable to work as a result of an accident or sickness.
• Income protection insurance provides a regular income to compensate for the loss of earnings through incapacity and being unable to work.

• The easiest way to work out what business insurance you need is to discuss your business with a specialist commercial insurance broker.
• Some insurance companies will tailor policies to meet the specific requirements of your business.
• You should aim to get at least three quotes.

Legal expenses insurance will cover your legal costs if you become involved in disputes over contracts, employment issues (for example, unfair dismissal, sexual or racial discrimination) and the recovery of bad debts.