Basics of business insurance

A good broker will put together an insurance package that takes into account the size of your business, your industry and your cashflow. He or she may suggest the following types of insurance:

• Owners' liability - this protects against claims if someone is hurt on your premises.
• Public liability - this covers a claim for damage caused by ordinary business activities, for example, if one of your pallets drops onto someone else's shed.
• Products liability - this covers you against a claim caused by your product.
• Professional indemnity - this insures you against damages resulting from advice you've given.
• Legal expenses - this covers the cost of legal disputes, tax and VAT investigation expenses and commercial contract disputes.
• Business risks insurance - you can insure against damage or loss to your assets through a variety of events such as fire, lightning, riot and acts of nature.
• Buildings cover - this covers the cost of rebuilding.
• Personnel - group life insurance, personal accident, travel, medical and permanent health each benefits employees, as well as your business.
• Keyman insurance is worth thinking about if you rely on a few key people, or even just one person.

Keeping the cost to a minimum

Make sure you're not paying over the odds by shopping around, or choosing an insurance broker with a good record. Consider increasing the "excess" - the amount you pay if you decide to claim - as this will keep premiums to a minimum.

David W Smith, Head of Market Management for Zurich's UK Commercial Business, says there is a lot a business can do to ensure that insurance costs are manageable.

"It's within your gift to stabilise premiums by preventing accidents and reducing your claims record," he says.

The best way of doing this is to ensure you have a good health and safety record. Look at ways of reducing the risk of accidents: if you occasionally need to do some welding, for example, consider subcontracting the job.

Review your security.

If you've been broken into several times think about hiring a security guard.

Review your cover

Your broker won't know if your circumstances change unless you tell him or her. Any of the following could alter the sort of cover you need:

• Diversification into new markets or products;
• A sharp increase or fall in turnover;
• Exporting, or moving into new territories;
• Buying new equipment.

Insurance is designed to bring peace of mind, but that doesn't mean you can afford to forgot about it altogether.

Tiscali can provide you a free, no-obligation competitive business insurance quote from a wide range of providers to suit your needs.

Commercial Liability Insurance
Professional Indemnity Insurance
Vehicle Insurance

Other useful links

For the law governing compulsory insurance see the Stationery Office: www.hmso.gov.uk

See also Businesslink: www.businesslink.gov.uk