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UK Business Insurance

Business insurance in the UK can be quite confusing depending on how you approach it, there are many different types of business insurance and some are required by law while others are just good business sense. One of the inherent challenges for any business currently operating in or relocating to the UK is what type of coverage you need and how much protection to get. While all businesses in the United Kingdom are required to have employer's liability insurance, additional coverage may or may not be required depending on the type of business being conducted. For instance, a solicitors' practice may need specialised solicitor professional indemnity insurance whilst Industrial and manufacturing operations will have very different risks and requirements than shipping or retail applications and will therefore need very different types of coverage.

By far the most common type of business insurance is liability and in the UK this falls into two main categories known as employer's liability insurance and public liability insurance. Both types protect the business from accidents involving employees and the public respectively. Employer's liability protection is to cover any financial or legal obligations that may develop from a worker being injured or becoming ill from your work environment. This does apply to outside locations like job sites and can be enforced if a former employee becomes ill at a later date. Employer's liability also ensures that your workers get the proper medical care they need in the event of an accident which builds trust in your company and improves morale. Public liability is for customers and other members of the public injured or becoming ill from your work environment and could include things like a customer falling or having an allergic reaction to something at your location. While only the employer's liability is mandatory, every business has some risk to the public however small and should be addressed accordingly.

Outside of liability protection, there are several other types of coverage that you should consider when operating in the United Kingdom like property, product liability and business interruption coverage. Property insurance has many facets but in most cases will provide compensation for weather and natural disasters and fires. Each situation is unique and can depend on the weather trends for the area your business operates in, the type of business and even what type of payout you receive. Some policies that cover a building's contents will pay the full value of items as if they were brand new and others take into account appreciation and depreciation.

Product liability is particularly important for retail businesses, businesses that distribute items from other parties or anything to do with computers and software to protect you against damage to consumer's property. Retail operations are particularly susceptible to product claims just from the higher level of direct contact with the public. Businesses that manufacture or distribute machine parts also need product liability due to the inherent risks of personal injury and property damage from malfunctioning parts. While manufacturers commonly carry protection for their products, if they go out of business your organization could be held responsible.

Considering the uncertainty of the world economy at the present time, protection is one of the most important decisions that you can make about your business. Taking some time to evaluate you protection needs can make all the difference in the success or failure of your business. One accident without protection can be enough to shut your business down or worse. From extreme weather and faulty products to malicious acts by disgruntled employees, your business is far too important to be left to chance.


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