Business Insurance Covers
Running a business is rewarding, but before it becomes successful, some steps need to be taken to ensure development is smooth and efficient; insurance should be obtained as a risk management strategy so that no financial loss occurs. Many accidents could happen which cannot be predicted, like natural disasters, physical injuries and product malfunctions. Not only does insurance assist with monetary compensation, but it also ensures that employees and customers are in a safe environment.
If you would like to read more information or learn more about the pricing of business insurance, you can do so here.
Business Insurance Covers/Business Owners Policy (BOP)
Business owners’ policy (BOP) is the minimum recommended insurance for a company to ensure rudimentary coverage. It is a development from general liability insurance, which only covers physical injury, slander and product errors, but in addition, BOP has business property coverage in its policy.
Below are accidents it covers:
General Liability Insurance
General liability covers any injuries caused on the business property or at the clients’ homes caused by an employee. This is essential because most businesses hold meetings in their offices every day or have clients come in to browse if they are a shop. Such things increase the risk of physical injury because, at the premises, a customer could slip on a wet floor, have a shelf fall on their head, a trip down the stairs or fall due to uneven ground, and could file a claim that this was the fault of the business. #
Similarly, an employee may visit a customers’ home for work purposes and damage their lawn or knock their computer onto the floor. If any of these events occurred, the BOP would pay for the replacement of the item and any medical expenses.
Product Liability Insurance
Product liability cover is usually included in general liability cover, but you should check in case it depends on the insurance company. Product liability cover means that any injuries caused by an item your business sells are covered. The insurance company pays for medical expenses like evaluations and treatments. For businesses that sell food, this could mean cases of expired meals or food poisoning that make your customer sick after they are ingested, and would also pay for the legal fees of hiring a lawyer to fight the claim.
Likewise, a store that sells dangerous equipment which has a manufacturing defect and then causes a wrongful death, like a car shop that omits to add a break and consequently causes a car accident, would need this coverage.
Property Damage
Lastly, BOP covers property damage. This could range from natural disasters like storms, fires or floods destroying the infrastructure and furniture to vandalism of the property, which requires repair. The property damage premium can be the most expensive type of cover because the insurance company has to consider how costly the payout would be to rebuild to property from scratch. For a medium-sized company with a half, a million-pound rebuild cost would pay an average premium of £416.
It is worthwhile to note that some insurers also include business interruption cover in their BOP, which covers your loss in revenue should the business have to stop operations for a set period due to property damage or theft. Researching different insurers to see which companies include this plan is suggested.
Other Business Insurance Covers
Additional covers not usually covered by BOP include:
Commercial Auto Insurance
Commercial auto insurance should be considered by businesses that use a company car daily. Vehicles can either be used solely for job purposes like driving to the worksite or conferences or include leisurely activities. The latter has a more expensive premium as the risk of crashes and accidents is higher. You can ensure both an individual or many people use the vehicle, but this, along with the model of the car, the annual mileage and the age of the drivers, may increase the premium price.
Employers’ Liability Insurance
Employers’ liability insurance is compulsory in the UK for employees businesses. If a worker were to be physically injured at work, the insurer would pay for their medical treatment and lose income whilst they can’t work. The minimum amount this policy should cover is £5 million, although it can go up to £10 million or more for bigger businesses.
To conclude:
In conclusion, business insurance covers vary depending on what type of business your run and the probability of risk associated with the services. All businesses should obtain liability insurance, and BOP is heavily recommended. Still, other types of covers can assist your company in preventing financial loss that would otherwise be harmful to the development and revenue.
Find out more about the importance of insurance here.
Other useful links about business insurance:
Business Interruption Insurance
Hospitality and Tourism Insurance
Transport and Logistics Insurance
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