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Businessinsure:
What insurance do I need?

One important question that all businesses and property owners have to ask is - what insurance do I need?

Most commercial ventures and entrepreneurs will have a requirement for some form of commercial combined insurance. This could include business insurance that is a legal requirement. Or it could be cover that a sensible and prudent business will take out to protect the business in the event of loss, damage or a claim against them for damage or negligence.

The best way to understand the insurance cover that is required is to talk this through with an business insurance broker. You should always ensure that the broker specialises in commercial and liability insurance. With effect from 15th January 2005, all insurance brokers must be authorised and regulated by the Financial Services Authority.

You should always get more than one quote so that you can compare business insurance premiums and cover. There is little point in purchasing a "basic" insurance cover that does not provide you with the level of cover you need.

When you receive a quotation you should ask who the insurance company is that is "underwriting" the quote. If it is an insurance company that you have never heard of you should ask the broker to provide more information on the stability and claims paying record of the insurer in question.

There are four main categories of commercial insurance.

What business insurance do I need?

1. Liability insurance - including Employers Liability which is required by law if you employ people, whether they receive a salary or not. The other main liability covers are public liability insurance, products liability insurance, professional indemnity and commercial legal expenses insurance. These covers can either be bought with those below (as a commercial combined insurance), or as part of a combined liability insurance package.
2. Building insurance - including property owners liability. This is for the structure, not the contents (see below). It will also include cover for glass (fixed) and sanitary ware (toilets and sinks). Loss of rental, payable and receivable, is also insurable.
3. Business contents and computer insurance, at the business premises and whilst anywhere in the world. Policies will normally cover business contents, or fixtures and fittings, whilst at the business address only (temporary cover whilst cleaning is usually provided). You will need to specify the equipment to be insured away from the business address, such as laptops, mobile phones, PDA's and notebooks.
4. Business car and van insurance. There is legal requirement to insure against third party damage, including injury to persons. This relates to you or an employee driving a vehicle and causing injury or damage to another person (ie a third party) or property belonging to a third party (ie another vehicle or a building).