What type of insurance does a limited company need?

When dealing with starts up or entrepreneurs, a common question arises, what insurance do I need for my business? Some of what is required is a legal requirement, while other policies are optional and will depend upon the particular type of business you run.

Here are some of the most important policies you should consider, and why.

Employers’ Liability Insurance
Employers’ liability Insurance is a legal requirement for all employers within the UK. The minimum required limit is £5,000,000 although most insurers give £10,000,000 as standard. The policy is designed to protect employees’ who sustain an injury or illness during their normal business activities by providing compensation. There are some exemptions to companies needing this insurance, they include limited companies with one employee who owns half or more of the share capital (ie you, as the director), and those who only employ close family members.

Public Liability Insurance
This insurance is designed to protect third parties, such as members of the public if they are hurt by something your business does, and crucially should also cover you for legal representation if anything happens.

Product Liability Cover
If you are make or sell something that could injure or damage someone or something if it malfunctions, product liability cover will protect you for claims that arise from third party injury or damage to third party property as a result of the product supplied.

Professional Indemnity Insurance
Professional Indemnity Insurance covers your business in respect of any incorrect advice or perceived failures in your professional services when undertaking work for your clients. The cover will pay for any compensation that may be due and any legal defence costs while defending an allegation. In many industries you will be required to have PI insurance before larger companies will utilise your services.

Legal Expenses and Tax Investigation Insurance
Legal expenses insurance is purchased to fund the costs of legal advice and/or the costs of bringing or defending a court case. Most policies include cover Tax Investigation which covers the time and expense of dealing with an HMRC enquiry into your affairs.

Directors and Officers Insurance
Directors and officers’ liability insurance, or management liability, is insurance cover that offers financial protection to those who are the director, partner or officer of a company. It will cover awards made by the court against the insured individual for decisions or actions taken within the scope of their regular duties. In addition legal expenses are covered as part of the claim.

Income Protection Insurance
Your finances may be very vulnerable if you were unable to work due to accident or illness. An income protection policy can provide you with replacement income for the long or short term.

Key Person Insurance
This type of cover protects the business if a key director or other nominated member of staff was to be injured or killed, protecting the business against loss of revenue while it searches for a replacement.

Buildings & Contents Insurance
Covers your computers, equipment and other workplace property such as business records against fire, flood, theft and more so you can have peace of mind that you’re protected against the unexpected. Cover can be arranged on an All Risks basis for items such as Laptops that leave the premises.

Business Interruption Insurance
Covers lost business income and any additional expenditure that you might have incurred following a loss such a fire or flood.

Goods In Transit and Marine Cargo Insurance
Covers goods against loss or damage whilst in your vehicle or when sent by a third party carrier. Marine Cargo Insurance goes a step further and covers losses arising from damage to goods whilst being transported around the world by road, rail, sea or air.

Engineering Inspection
By law there is a statutory requirement to inspect plant at regular intervals that are open to deterioration over time. The policy covers the cost of an inspection for your plant and machinery, such a mechanical lifting gear, ventilation and compression systems by a qualified insurance company engineers. They visit the location of the plant, inspect and then provide you with an inspection certificate.

Contract Works
Contract works insurance is an insurance for builders and other tradesmen, designed to cover work that’s underway on a site. It can pay to repair or redo the work that’s in progress if it’s damaged by an insured event like fire, flood, storm, vandalism or theft. Cover can also include Own Plant, Hired In Plant and Employee Tools.

All our account executives have their own specialist fields, from Recruitment Consultants Professional Indemnity to Electrical Contractors Liability. If you would like to see what options are available, give us a call

Our service includes the following:

•            A no-obligation review of your insurances
•             Identification of any gaps in cover
•             Help you to arrange a policy that meets your needs
•             Answer any questions you may have
•             Comparison of insurance quotes & cover from multiple insurance companies
•             Availability of instant cover
•             Option of face-to-face, telephone or online communication
•             Ongoing one-to-one support throughout the year
•             We’ll be here to help if you need to make a claim

We are a Kent based independent insurance broker (no call centres). We’re happy to offer you advice and answer any questions you may have.