Insurance Guides Archives - Small Business Insider

Guide to motor trade insurance

Posted on January 26, 2018 Written by Administrator

The website for aspiring small businesses, Startups, explains the ease with which you might set up as a motor trader.

One of your first steps before beginning any such business – whether you set up as a full-time formal company, sole trader or even on a small-scale, part-time basis is to arrange motor trade insurance, argues the website.

So, what is motor trade insurance and why is it likely to be so essential to your business?

By way of an answer, it may be helpful to look at the three essential components of the typical motor trade insurance policy – while acknowledging that there are probably as many different types of cover as there are motor trading businesses:

Motor trade road risks insurance

this component provides the minimum third-party insurance cover required by law;
as with other types of motor insurance, however, it is also possible to upgrade the cover to third-party, fire and theft or to fully comprehensive insurance;
given the value of the vehicles likely to come into your control and the risks to which they are exposed, the higher levels of cover may be appropriate for most businesses;
provided you register as a motor trader – and earn the right to use trade plates – your motor trade insurance covers any vehicle that any of your named drivers uses for purposes of your trade;
if you arrange comprehensive cover, your motor trade insurance protects against loss or damage to both your own trade vehicles and your customers’ cars;
under this heading you might also arrange the cover necessary when potential buyers want to make an accompanied test drive of one of your vehicles;

Motor trade premises insurance

if you are operating from premises that you own or lease, this insurance may cover theft, loss or damage to the property and the tools, machinery and equipment used in your business;
it may also extend to any vehicles kept on the premises – including those owned by the business and by your customers, together with their personal possessions;
in the event of loss or damage to your premises or essential tools, this element of your motor trade insurance may also offer financial compensation for the business interruption that results;

Motor trade liability insurance

your liabilities as a motor trader – however large or small your operations – are many and varied, and represent potentially considerable financial risks;
in the course of your normal business activities, for example, a customer, supplier, neighbour or passing member of the public may be injured or have their property damaged, claiming your liability;
the expense of defending any such claim – or meeting it in the event of the claimant succeeding – may be covered by your motor trader’s public liability insurance;
similarly, your repair, servicing or maintenance of customers’ vehicles may be met by claims of defective workmanship and actions to seek damages – and your indemnity lies in the liability insurance of your motor trader’s cover;
an essential component of your liability cover is employers’ liability insurance, which you are legally obliged to arrange for a minimum of £5 million – although indemnity is often provided for as much as £10 million.

The many variations which may be incorporated into motor trade insurance tailored to the individual needs and requirements of your own business are too many to mention in this brief guide. You might, therefore, want to consult a specialist broker to arrange the cover suitable for your needs.

Guide To Employers’ Liability Insurance

Posted on July 20, 2017 Written by Administrator

If you run a business of any kind and employ people on a full-time, part-time or temporary basis, you have a responsibility towards their health and safety. Employers’ liability insurance is designed to provide you with financial cover should an employee suffer an injury or illness that could be considered your fault and decide to make a claim for compensation.

Why you may need employers’ liability insurance

Employers’ liability insurance is a legal requirement for anyone who employees staff. If you have a business that employs people, no matter how small your business or even if you only have a couple of employees, you must have this insurance in place. Note, there are a few exceptions to this rule.

If you do not have it in place, you could be fined a considerable amount of money as a result.

The reason for this is that you have a duty of care towards your employees, and accidents can happen anywhere. Even a trip on a loose bit of carpet could be the basis for a claim for compensation that could end up costing you a lot of money.

This can clearly lead to serious financial problems for you and your business. Even if you are very careful and follow all the relevant health and safety guidelines, things can still go wrong and it can be difficult to prove that you were not in the wrong.

This type of cover is necessary in any type of business, but it can be even more essential in high-risk areas like construction.

It should also be remembered that it is not only required for full-time and part-time employees, but also for contractors you hire, temporary staff and even volunteers.

What does it cover?

The main cover that this type of insurance provides is legal costs should an employee make a claim for compensation, as well as any claim that is successful.

You may find that court attendance compensation is covered, and this may come with a per-day limit.

It may also be the case that you are offered various other types of insurance along with this, including things like public liability cover, professional indemnity cover and personal accident cover.

Things to look out for

There are many factors to keep in mind when taking out this type of insurance. These include:

always try to choose a provider with experience in this area. You may want to use the services of a broker working with a number of providers in order to get a more suitable policy for your needs;
the cost of the policy may be affected by various factors including the number of employees and the level of cover you require;
other aspects that can affect your cover include the length of time you are trading, the type of company you run, whether you have had any claims over the last five years, and the amount of cover you need;
there are also some exemptions when this cover is not legally required, such as for limited companies that employ one person who owns more than 50% of the company.

Do you need this insurance?

As well as being a legal requirement in most situations, employers’ liability insurance gives you the peace of mind in knowing that you and your business are protected should a claim be made against you. No matter how careful you are to avoid accidents, it is still a requirement that you should not overlook.

Guide To Office Insurance

Posted on July 20, 2017 Written by Administrator

If you run a business from an office, you may want to consider taking out an office insurance policy. This type of policy aims to cover everything that you could need to protect your contents and employees, but the type of cover provided varies depending on the provider.

Why you may need office insurance

Office insurance policies provide cover for the various risks that may be present in office environments. Business owners operating from offices may want to take out insurance mainly to provide protection for the contents within the office, but there are many other types of cover that can be included in a policy.

The main aim of this type of cover is to provide you with everything you need to ensure you are covered for any eventuality. That way you can focus on the smooth running of the office without having to worry about unexpected and expensive problems arising.

What does it cover?

A typical office insurance policy may include all or some of the following, but it is important to remember that every policy is different:

if you own the office building, you may find that building insurance is available as an option, covering hazards such as flooding, fire and storm damage. However, if you are renting the office from a landlord, it will be the landlord who is responsible for building cover;
one thing you will probably own is the contents within the office. This could include anything from desks and furniture to expensive computers, so it is important to state how much cover you require based on your needs when you buy a policy;
you may also be able to get cover for fixtures and fittings, including shelves, carpets, etc;
if your office is located next to the street, you may be able to get shop front cover included, which may cover the windows and signage against damage;
stock cover may be included, or you may need to get it covered separately;
both employers’ and public liability may be included, which cover claims arising from your employees or from members of the public;
business interruption cover may be included, which may provide financial assistance should your office become damaged in a storm and you are unable to use the premises to run your business;
product liability is sometimes included, and you may require this if you produce products as part of your business.

Things to look out for

Discounts may be available for office insurance policies, such as if you have an alarm or CCTV installed in the office from an accredited installer. If you have a good claims history you may also find that you can get a discount.

Because all policies are different, it’s important to compare them before you choose so that you know you are choosing the most suitable policy for your needs.

Some things may be optional in a policy. For example, you may already have employers’ liability in place and not need to get it included.

Protect your office

Office insurance is something that you may want to consider if you run a business from an office. If you want to, use the services of a broker to provide you with a more tailored solution for your needs, and then make sure you find a policy that provides you with the cover your require so you can focus 100 percent on running your business.

Guide To Public Liability Insurance

Posted on July 20, 2017 Written by Administrator

Employers must adhere to the correct health and safety requirements at all times in order to reduce the chance of an accident occurring and affecting a member of the public or a client. However, accidents can always happen, which could lead to a claim of compensation against your company. For this reason, many employers will have public liability insurance in place.

Why you may need public liability insurance

Accidents can happen even in the safest places. You may take every care to ensure that you adhered to health and safety guidelines in your place of work, and it may indeed be a safe environment. However, one slip on a wet floor is all it can take for someone to make a claim for compensation against you.

You may own a shop or restaurant that is used by members of the public every day, in which case public liability insurance is essential. However, even if you run an office that is not frequently visited by anyone other than your employees, there may still be occasion when other people have to enter the premises.

Insurance protects you from the possibility of paying to defend yourself in court and paying a large amount of compensation, which could be devastating for your business.

What does it cover?

Public liability insurance is available for a wide range of companies, from the largest multinationals to sole traders. The level of cover typically differs depending on the size of your business, but the basic elements of the cover usually remain the same.

Essentially, it will provide a certain amount of cover for your legal costs, including legal counsel, should you end up going to court to defend yourself. Even if the person making the claim is in the wrong, the cost of protecting yourself could still be high.

It also covers any compensation that you are required to pay, also up to a limit that you will agree when you take out the insurance.

In addition, and depending on the providers, you may be offered the option of including other types of insurance with this, such as employerss liability insurance.

Things to look out for

The amount that you pay for this insurance will not only depend on the provider that you use. It will also depend on the size of your business, the amount of contact that you have with the public, and the level of risk involved in your business.

For example, if you work with the public all the time in a setting like a shop, your level of risk may be perceived as higher compared to if you work in an office, and this may be reflected in the premium.

You usually have the option to choose how much cover you want to have in place. For example, cover may start at around £25,000, which may be all that you want. However, it can go up to millions of pounds in many situations. There is no right amount that you need, simply what you would like to have in place, and you may want to talk to an expert to get their advice.

If you have made claims in the past five years, this could also affect your premium.

Protect yourself from compensation claims

Public liability insurance is something that most businesses will want to have in place. If you decide that you would like it for your business, find a policy that is suitable for you, then make sure you get an appropriate amount of cover for your needs so you know that you and your business are protected.

Guide To Restaurant Insurance

Posted on July 7, 2017 Written by Administrator

Running a restaurant can be a potentially risky operation, as can running any business dealing with food. Not only do you have all the other risks involved in running a business, but food also comes with its own risks, such as the possibility of causing a customer to become ill.

For your peace of mind, it may be a good idea to have restaurant insurance in place, which covers many of the areas of risk so that you can focus on serving up meals to happy diners.

Why you may need restaurant insurance

Slippery floors, food poisoning, burns – there are many things that can go wrong in a restaurant, even if you do everything by the book. Kitchens by their nature present more risks than many other work environments, and you will want to ensure that, when accidents do happen, you have protection in place should your employes or customers make a claim for compensation against you.

However, restaurant insurance goes beyond liability cover. It also provides protection for your property and stock, as well as other risks that may affect the smooth running of your business.

What does it cover?

All restaurant insurance policies are different depending on the provider you use. However, the following are typically included on many policies:

public liability insurance to provide you with financial protection should a member of the public make a claim of compensation against you for any reason;
employers’ liability insurance to provide cover for claims made by your employees;
goods in transit, which provides financial protection for goods on the move;
loss of licence, which can provide cover for any loss of income up to a certain level in this situation;
stock cover, including cover for frozen stock, tobacco and alcohol;
building insurance to protect your property from fire, flood and storm damage;
contents insurance;
business interruption cover to provide financial assistance should you be prevented from doing business as the result of an insured peril.

Things to look out for

All policies are different, and you may not require everything that is included in a restaurant insurance policy. For example, you may not own the property and may not therefore require building insurance, so it is essential to only get cover for what you actually need.

You may also want to buy public liability or employers’ liability separately depending on your needs, or it may be more convenient to get them within one policy.

There are many factors that may affect the premium. These may include the size of your restaurant, the number of staff you employ, whether you have an alarm system in place, and the amount of time you have been trading. Find out from your provider whether there are other aspects that can affect your premium so you know how to find the most suitable product for your needs

Consider your insurance needs

Restaurants can present a number of risks for the owners, so it is important to have suitable insurance in place. By finding an appropriate policy for your needs, you can focus on the running of your restaurant without having to worry that a small mistake could put you out of business.

Guide To Professional Indemnity Insurance

Posted on July 6, 2017 Written by Administrator

Professional indemnity insurance, sometimes referred to as PI insurance, provides protection for professionals who could be the subject of litigation due to mistakes they make.

If you provide any kind of professional service, this insurance may be something that you want to invest in so that you do not have to worry about potential mistakes causing you serious financial problems, nor affecting your reputation.

Why you may need professional indemnity insurance

No matter how careful you are to avoid mistakes when providing a professional service, things can still go wrong. You could provide advice that turns out to be wrong, or you could make a seemingly simple mistake that costs a lot of money for your client to rectify. In such situations, you could find yourself facing a claim for compensation.

Mistakes like this can happen in a wide range of professions, including graphic designers, financial advisors, architects, accountants and many more. Essentially, if you provide any kind of professional advice or service, the risk of making a potentially costly mistake is always there.

This type of insurance provides you with peace of mind in knowing that you are protected in any circumstance. Even if you are not to blame for a mistake, you may still have to defend yourself, and the legal fees can be costly.

In addition, if you work in certain sectors, you may find that clients are only willing to hire your services if you can show that you have professional indemnity insurance in place.

What does it cover?

Professional indemnity insurance can cover a wide range of situations. It essentially covers your legal costs should a claim arise, including solicitor’s fees and legal counsel, as well as any compensation that is due up to a set limit.

The reasons why a claim may be made in the first place could be due to:

loss of sensitive client data;
infringing the rights of a client;
providing professional advice that turns out to be wrong;
making a mistake that is expensive for the client to rectify.

Things to look out for

You may be able to get a specialist policy that is targeted toward your area of expertise. For example, policies may exist that are targeted specifically at accountants, architects, IT professionals, etc.

The cost of the cover can depend on the type of business you run because there is a greater risk of claims being made in some professions. It can also vary depending on the amount of cover you want to have in place, which can range from a few thousand pounds to millions of pounds.

Whether you have had any claims in the past can also affect how much you pay for your policy.

In addition, you may find that you can get extra types of cover added on, including public liability, product liability, employers’ liability and office contents.

Protect yourself in your profession

If you provide any kind of professional service, you may find this type of insurance useful. Even if you always take every care to provide a good service, the fact is that mistakes can happen.

Knowing that you are financially covered for any eventuality can provide you with peace of mind and allow you to focus on your profession without the constant worry of having to defend yourself against claims made against you.

Takeaway Insurance

Posted on July 6, 2017 Written by Administrator

If you run a takeaway, you will be aware that there are certain risks associated with this type of business for which you may require protection.

Takeaway insurance policies are designed to provide you with cover for all of the most important risk areas so that you can focus on delivering a good service to your customers without having to worry about the financial implications should something go wrong.

Why you may need takeaway insurance

As a takeaway owner, your main concern is providing good food and good service to your customers to keep them coming back. However, when something negative happens, the effect on your business can be very serious, especially if it involves a claim for financial compensation or the loss of your stock.

By investing in takeaway insurance, you can focus 100 percent on running your business to the best of your abilities without having to worry about possible problems that could have serious financial consequences.

What does it cover?

Takeaway insurance policies typically cover the main areas of risk that you could face in your business. However, they all differ and the following insured events are just an example of what you can expect:

as you are constantly in contact with the public, you may want public liability insurance in order to get financial protection in case someone makes a claim against you after becoming ill or injured on your property;
you will also need employers’ liability insurance if you employ any staff because, in most cases, this is a legal requirement. You can get this included in a takeaway policy or as a standalone policy;
you may require cover for your stock, especially frozen stock, and this is often included;
if you own the premises from which you operate, building insurance may be necessary;
some policies may provide business interruption cover should you be unable to trade after being affected by an insured event like a fire;
contents insurance may provide cover for any furniture, fixtures and fittings you have on your premises;
goods in transit cover can provide protection for stock that is being transported;
if you lose your licence, you may be able to get cover for the loss of income up to a certain level.

Things to look out for

Although public liability and employers’ liability may be included in a restaurant insurance policy, you may also be able to get these separately. It depends upon what is most convenient in your situation, but just make sure you are not paying for the same thing twice.

Premiums will differ between providers, but you may find that the same provider can also offer you different premiums depending on various factors. For example, if you have an alarm system in place, this could lead to a discount, so it is worth finding out about this before purchasing your policy.

Consider insurance for your takeaway

Takeaway insurance can be a useful purchase if you run your own takeaway service. Make sure you find a policy that is suitable for your situation, and ask a specialist for advice if you are unsure about any aspect of the cover. Then you can focus on running your business with the peace of mind that comes from knowing you are covered for any eventuality.

Shop Insurance

Posted on July 6, 2017 Written by Administrator

Shops are not often considered particularly risky environments, and yet they can still present risks that can lead to compensation claims that can seriously affect the running of your business. To get protection for a wide range of potential risks that you may face, shop insurance is often considered a good investment.

Why you may need shop insurance

Running a shop has enough challenges without having to worry about the threat of something going wrong and placing your business at risk. It could be something as common as someone tripping over in your store and hurting their wrist, but the consequences can be potentially serious should you find yourself defending yourself against a claim for compensation.

There are also many other potential risks to your stock, money and contents that could affect the running of your business. Shop insurance makes sure you have the essential cover in place so that you can focus on your work without having to worry unduly about the financial consequences of something going wrong.

What does it cover?

Shop insurance can cover a large number of possible events, but it is important to remember that all policies differ slightly. However, you may typically find the following insured events covered:

public liability is often included on a policy because the public may spend a lot of time on your premises. This provides financial assistance should a member of the public become ill or injured on your premises and claim compensation;
product liability may be required in case one of your products causes illness or injury to a customer;
employers’ liability is a legal requirement if you employ staff, and it may be included on a shop insurance policy;
business contents cover, which could include items like the cash register and counter;
financial assistance should you be unable to trade due to an insured event like a flood or fire;
theft of business money, either in transit or on the premises;
goods in transit;
building insurance, which may be required if you own the premises.

Things to look out for

Make sure you find a suitable policy for your type of shop, which means one that covers the risks associated with your business and the type of stock that you sell.

If you have a kitchen in your shop, this could affect your policy due to the greater risks associated with kitchens, so make sure you find suitable over.

On certain policies you may be able to arrange a seasonal increase for your stock if this affects you.

Protect your shop

Shop insurance is designed to cover all of the potential risks that may affect the running of your business. Insurance policies can differ depending on the provider, and they can also differ depending on the type of shop that you run.

You should make sure that you find a policy that covers the most important risks for your particular shop, so always ask the provider about this before you take out your policy to ensure you find the most appropriate cover for your needs.