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Limited Liability Insurance For Small Businesses

Getting limited liability insurance for small businesses along with other types of cover such as business travel insurance is crucial to running an efficient, effective company in the UK. All companies, no matter how well run, can be the centre of a claim if things go wrong. When this happens liability insurance is required to cover the costs of damages and the pay-out involved. This is not limited to the big corporations - small businesses are just as likely, if not more likely, to be claimed against and so need some cover to keep them protected. This guide to limited liability insurance for small businesses will show you the different types of cover you may need in this area.

Commercial and Professional Cover

Commercial limited liability insurance for small businesses is necessary for any company who advertise regularly or use sales as a big part of their company approach. This protects against claims that the product or service offered by your limited company is not as advertised or that claims made at the point of sale were not accurate. Though none of us are hoping to run small businesses that lie on their advertising, sometimes confusion can result from sales techniques and, if it does, this form of limited liability insurance for small businesses is required.

An important form of limited liability insurance for small businesses that are engaged in legal or medical practices, professional liability covers you against claims over issues such as malpractices, negligence or omissions made on an agreement. In some industries this is a legal requirement and cannot be avoided but even if you are not required by law to have it professional cover can come in useful if you are working in the role of a consultant. Certainly anyone who is giving people advice on medical issues should hold this insurance.

Product Cover

Do you sell a product or service that could potentially cause a customer an injury or illness? If so, some kind of product limited liability insurance for small businesses is going to be needed to keep you protected. Obviously the level of coverage you need here is variable depending on the actual work you do and the way your customers access your products and use your services. If, say, you manufacture kitchen appliances your product liability insurance is going to be much stronger and more flexible than, say, if you run a small paper manufacturing company, though both limited businesses would require cover.

Employer's and Public Cover

If you employ staff in any kind of role you will need some employer's limited liability insurance for small businesses to keep you protected against claims made for damages. Once again the industry you work in influences the depth of coverage you require but if you think you can scrimp on this policy because you run small office businesses with limited staff numbers, you are mistaken. Accidents can happen anywhere, even in the most placid office space, and if they do you will need employer's liability insurance to cover the claim and the payout.

Think now about the general public and how your work may affect them. Do you work in the vicinity of members of the public or is your premises open to the public? If either of these are the case you will require some public liability insurance for your small businesses. This is not limited to restaurants, nightclubs or big festivals. Anywhere that the public may have access to can become the scene of an accident and when it does the owner is going to be to blame. In order to illustrate how this can happen even in the calmest work place, let's take an example.

Let's say you run an office with limited numbers of staff, which generally is not visited by the public. One day a salesman comes in from your supplier of office furniture to show you some new samples. By the water cooler a small amount of liquid has formed on a hardwood floor and has not been noticed by any member of staff. The salesman slips on the water and breaks his hip and one week later a claim for damages is levelled at the company. This shows how even businesses that do not deal regularly with the public require public liability insurance in order to remain protected.

Limited liability insurance for small businesses comes in various shapes and sizes. The most important thing to keep in mind is that, no matter what kind of company you run, it is likely that you will need some provision in all areas. Accidents happen in all kinds of workspaces and when they do the company is liable for a claim. Start searching for limited liability insurance for small businesses today and be sure you go into business protected.

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