In the business world, insurance is simply a must. There are no ifs or buts about it. As a contractor, it is your responsibility to find the right business insurance for you and your company, as failing to do so will land you in some extremely hot water, and could literally ruin you. Contrary to popular belief, business insurance isn’t just enforced to make money, it is designed to serve a purpose and to actually help contractors out all over the world. Business insurance is actually one of your most important expenses, so understanding how it works, why it’s needed, and how to find the best providers at the best rates, is absolutely essential, which is why we’ve compiled this handy article for you. Here we’ll be telling you what you need to know about business insurance for contractors, so without any further ado, let’s talk insurance.
What is business insurance? – Put simply, there are a number of different business insurances in place, with each one designed to serve a specific purpose. Some of the most common examples of business insurance include: Public liability insurance, business liability insurance, office insurance, professional indemnity insurance, E-risk insurance, product liability insurance, employers’ liability insurance, and personal accident insurance amongst others.
Why do you need it? – Basically, you need business insurance to help protect you and your business for a number of different reasons. For example, with public liability insurance, this insurance is put in place to help protect your business if any member of the public was injured by someone, or something associated with your business, or if any of their property or belongings were damaged by somebody or something associated with your business. It is put in place to compensate them if any of the above should occur, rather than you having to cover the costs yourself. Product liability insurance, works in the exact same way, except that this covers damage or injury caused via products that you have supplied to members of the public. E-risk insurance is ideal for smaller businesses and offers cover against online risks associated with working via the internet I.E hacking, viruses, ID theft etc. Basically, any form of business insurance is required to help safeguard you and your business, and to provide additional peace of mind in the process.
What are the limits required? – For businesses declared in default after July 3rd 2015, 100% protection will be in place where claims: arise due to the incapacity, or death, of the policy holder, arise in respect as a result of liability subject to compulsory insurance, or arise in respect due to liability which is subject to professional indemnity insurance. Claims will be 90% protected where they have arisen due to policies with no upper limit in place.
How much does it typically cost, and who are the main providers? – Of course costs will vary depending on who you decide to go with, but generally speaking, there is no average cost as it depends on which policy/policies you decide to take out. Some could be around £100 per year, yet others could be as much as £600 per year. Most public liability policies average at just over £150 per annum however. As for the main providers, they include:
- Simply Business
- Direct Line
- MORE TH>N
If you are on the lookout for a trusted, reputable, and affordable business insurance provider however, here at Phoenix we’ve certainly got your backs as we currently maintain some very strong relationships with some of the best providers in the country, who offer fantastic rates, and top of the line services. We can put together a bespoke insurance package for you, or better yet, get your insurance included as part of our GIGA and TERA Cloud Accounting packages. Simple request a free, no obligation demo today.