Tips for Staff and Business Protection

If you’re a small business owner, you already have a lot on your plate between building new contacts and the day-to-day management of your business. But even though you maintain a busy schedule, don’t overlook the importance of insurance for your business. Proper coverage will protect you from losses and damages, financial risks, and accident at work claims. Find out what you need to know about getting insured by reading the article below.

Insurance Required By Law

Under the Employer’s Liability (Compulsory Insurance) Act 1969, any business with employees is required to have insurance. The policy must cover full-time employees, as well as part-time, contractual, seasonal, and temporary employees. The reason for this is if one of your employees suffers an industrial accident or illness, the insurance policy will cover the cost of the claimant’s compensation as well as your legal fees, so think of it as a way to financially protect your business against insolvency. By law, the policy must cover a minimum of £5 million, though most policies cover up to £10 million. This doesn’t mean that the policy has to break the bank: premiums start for as little as £30-£40 a year.

As well as Employer’s Liability Insurance, your business is required to have Third Party Motor Insurance if your business uses motor vehicles. Again, the insurance helps protect your business in the event that you or one of your employees is found responsible for causing an accident that leads to property damage or personal injury. Most businesses additionally take out a Comprehensive Insurance Policy that pays for loss or damage to your company vehicles as the result of fire or theft.

Additional Types of Coverage

While other types of insurance are not required by law, depending on what kind of business you run, it may be a good idea to purchase additional policies. Buildings and Contents Insurance policies will compensate you for damage that is done to your office building, stock, or equipment as the result of natural disasters—flooding, fires, lightning, and earthquakes. Public Liability Insurance, Product Insurance, and Directors and Officers Insurance are all aimed at protecting your business, your employees, and your product lines should a member of the public come forth with a claim against one of these entities. Environmental Liability Insurance is especially important for construction and mining companies, as it will help you repair any damages your business may wreak on the natural landscape, water supply, or on protected plant and animal species.

If you want to provide your employees with a better working environment, you may consider providing them with life insurance policies, private medical insurance, income protection insurance, or personal accident and sickness insurance. No matter which types of subsidiary policies you ultimately decide to invest in, remember to carry out regular risk assessment and management practices to provide a safer and happier working environment for your employees.

Comments are closed.