How do I get commercial insurance?

Running a business is an equally rewarding and stressful job. Various risks come with any company, although they can differ in severity depending on the nature of the business and its operations. To prepare for all eventualities, you will need to invest in the correct level of insurance.

One of the best ways to make sure that you are covered for whatever is thrown your way is to buy commercial insurance. These insurance packages are there to protect you, your staff and customers in various scenarios, should you require financial or legal aid.

Although not all types of commercial insurance are a legal requirement, it’s a good idea to make sure that you have the right cover based on your company’s needs.

In this article, we’ll take a look at how you can get the right commercial insurance for your company and why you need it. We’ll also explore the different types of commercial insurance and how they can help you save on legal expenses if you find yourself faced with an accident or crime of some kind.

How do I get commercial insurance?

Commercial insurance can be tailored to the needs of your business. You can purchase an insurance package that covers whatever your company needs protection for, such as vehicles, public liability and employers’ liability. Depending on the needs of your business, you may also want to consider cover for things such as your property and building.

Many different insurance policies come under the commercial insurance umbrella. We can help you find the suitable cover that will help you if anything happens to your business.

Continue reading to find out what commercial insurance covers and how it can benefit you and your business.

What is commercial insurance?

Commercial insurance is a core term that includes many different types of business insurance. These policies protect your business and you should anyone make a claim concerning damage, loss or injury. Not only will you be protected by these insurance premiums, but the insurance will also aid your employees, customers and members of the public.

Various types of insurance can be built into a single package that you can buy under one policy. They can be tailored to suit your business’s individual needs, based on your company’s operations and daily running.

Some examples of commercial insurance include public liability insurance, employer’s liability insurance and professional indemnity insurance. Employers’ liability insurance is a legal requirement if you employ one or more people. Whilst not all types of insurance are a legal requirement, many of the policies are necessary to ensure that you won’t face financial or legal problems in the case of an emergency.

Why do I need commercial insurance?

All sorts of businesses need commercial insurance, no matter what they sell or how small they are. Commercial insurance can protect your company against financial loss should someone claim against you or if your company is a victim of damage, financial loss or other mishaps. The policies will protect you against accidental damage, crime or liability claims.

Employees who are injured whilst working at your company would be within their right to claim compensation. They may claim to cover their medical expenses or as reimbursement for emotional distress. In this instance, you could face legal fees and compensation claims that can add up to millions of pounds. Without insurance, you would be forced to foot this bill by yourself. This financial responsibility could severely damage or destroy a company, especially a small business.

Every company with one or more employees is legally required to have employers’ liability insurance covering at least £5 million. Companies that are found without this type of cover can face a fine of £2,500 on a daily basis until you purchase the insurance.

You might also face claims made by members of the public or customers, which public liability insurance can help you cover. As with claims made by employees, these claims can cost your company a significant amount of money, which would not only have an impact on your finances but your business’ reputation too. However, unlike employers’ liability, public liability insurance isn’t a legal requirement, although it is highly recommended.

Insurance is also important to cover and protect other aspects of your company, such as its property. You can insure your business address to make sure that you will be reimbursed for repairs, should your property get damaged. Business Interruption insurance is another popular business insurance policy because it will provide you with financial aid should you be unable to operate for a valid reason, such as damage to your business premises.

Who is commercial insurance for?

Commercial insurance is for businesses of all sizes to help give them financial aid if they face claims made by employees, members of the public or customers. It can also help companies if their property suffers damage or they are targeted by thieves.

This combined business insurance can protect companies against financial loss that would otherwise devastate their business. Employers’ liability insurance is also required by law if a company has one or more employees. Some businesses are also required to have professional indemnity insurance, which protects companies against claims concerning the quality of their products or services.

When should I buy commercial insurance?

You should buy commercial insurance when you are starting a business so that you are covered in the worst-case scenario. It will act as a safety net if your business premises are damaged, or a member of the public or an employee makes a claim against you. These things aren’t nice to think about but they can happen from day one, so it’s best to be prepared.

It’s best to regularly review and update your commercial insurance as your business will be constantly evolving. You might decide to buy a van for your business, which means that you need commercial motor insurance, for example. Business van insurance is different to standard car insurance, which is why you would need to look at specialist insurance for your business vehicles.

Staying on top of your insurance policies will help make sure that you are fully protected in just about any eventuality, leaving you free to get on with running your business.

FAQs

What impacts the cost of commercial insurance?

Different factors can change the amount you pay for commercial insurance. The biggest contributing factor is the amount and type of policies that are included in the cover. Tailor-made insurance policies will vary from company to company, which is why we will help you find the right cover at the best cost.

Some of the other factors that can impact the cost of your insurance premiums include the type of business that you run and the risks that are associated with the operations of your company. For example, a building company might carry a higher risk factor than a marketing company, solely due to the nature of the day to day activities. The level of interaction that your staff has with members of the public can also impact the likelihood of compensation claims.

The location of your company’s property and the security of the premises can also increase or decrease the cost of insurance. You could lower the cost of your insurance by implementing security measures such as cameras and alarm systems. These actions would decrease the chance of vandalism or stolen property.

Other factors that would impact your insurance costs include training procedures and the number of employees that you have at the company. Smaller numbers of properly trained staff would have a lower risk level and would be less likely to be involved in accidents or other incidents.

Is commercial insurance tax deductible?

Insurance is tax-deductible if it is classed as an allowable expense. This means that the insurance must solely be used for the benefit of the company and cannot cover personal effects.

Summary

Commercial insurance is made up of multiple types of cover that fall under one policy. It is a core term for business insurance, of which employers’ liability is the sole legal requirement for any business with employees. You can get lots of different types of commercial insurance including public liability, property cover and motor insurance.

The nature of a company’s operations will determine what kind of insurance is needed. For example, a company that deals with members of the public will need public liability insurance, whilst a business that owns vehicles will need motor insurance.

Here at A-Plan, we can provide you with business insurance quotes to help you find commercial insurance that fits your company’s requirements. Whether you need commercial property insurance, buildings insurance or personal accident cover, we can help you decide which commercial insurance policies are right for you.