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.