As a limited company director, you must protect yourself and your business with the correct business insurance. Some of the insurances are required by law, and other policies are optional and will depend upon the particular type of business you operate. Continue reading to discover the types of business insurance you should consider.
Employers Liability Insurance
Employers Liability insurance isn’t mandatory if you’re the sole director of your limited company and hold 50% or more of the share capital in the company. However, if you employ someone, it is a legal requirement to have a valid policy. As a director, you are responsible for the health and safety of your employees while they are at work. In the unfortunate event that one of your employees suffers an injury or accident while at work, they may claim against your company. Having a comprehensive Employers Liability policy is always a good idea to cover against any legal costs for defending a claim, as well as for the cost of compensation and damages.
Public Liability Insurance
Public Liability Insurance will protect your limited company from claims for injuries caused by your or your employees to others or for property damage whilst on company business. For example, if a plumber fails to secure piping in an office block correctly, it could result in a leak and cause damage to the fittings and fixtures below. Public Liability Insurance will cover your legal costs (including the claimant’s costs if you’re found to be at fault), damage and loss of current and future earnings.
Professional Indemnity Insurance
Professional Indemnity Insurance is vital if your business gives advice or offers a professional service to other companies or if you deal with client data or intellectual property. Professional Indemnity Insurance will protect you in the event of a claim from a past or present customer for dishonesty, negligence, or damage to documents or similar.
Product Liability Insurance
Product Liability Insurance protects you if you make or sell something that could damage or injure someone if it malfunctions. Product Liability cover will also protect you from claims that arise from third party injury or damage to property due to the product supplied.
Income Protection Insurance
Income Protection Insurance can provide you with a replacement income if you cannot work due to illness or an accident.
Buildings and Contents Insurance
Buildings and Contents Insurance provides peace of mind that your equipment, workplace property and business records are protected in the unfortunate event of a theft, fire or flood. This type of insurance will pay for the cost of the replacements or repairs for damaged, destroyed or stolen items. You can also arrange specific cover for items that leave the premises on an all-risks basis.
Business Interruption Insurance
If your business is disrupted due to damage caused by an event such as a fire or flood, Business Interruption Insurance provides you with the financial cover to get up back up and running. The insurance can cover lost business income and any additional expenditure that you might have incurred.
Personal Accident Insurance
Personal Accident Insurance covers serious injury or death caused by accident. It can pay for lost income and hospitalisation, and medical costs up to the policy’s limit.
Are you interested in specialist insurance advice?
Bluebird Accountancy is partnered with a specialist contractor insurance provider, to help our clients with insurance and IR35 queries. And, our clients get an exclusive discount. Please contact us for more information.
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