Type of Business Plans
Although there are mainly three types of business insurance UK plans, there are several sub-categories of each plan. As a business owner, you can choose the type of plan you want based on your requirements in the UK. If you are planning to start a business in the UK then you need to have a business insurance UK plan even if you are not a UK citizen.
The three main types of business insurance UK plans include:
- Liability Insurance Cover
- Property and Buildings Insurance Cover
- Business assets and equipment Insurance Cover
These business plans can be divided into several sub-categories, which will help you to understand what all is covered in business insurance UK. So let’s look at them:
Employers Liability Insurance
This falls under the liability insurance cover and becomes important if your business has one or more employees. The legal minimum in this type of business insurance UK is currently £10m and this policy will offer cover against illness, body / physical injury, or even disease within the course of employment.
Public Liability Insurance
In public liability insurance, your business will be insured against any physical injury caused to an employee within the business premises or while on the job. The limit of indemnity is what a UK insurance company will pay out when a claim is made. The maximum limit of indemnity usually is £5m but although a cover of £10m can be asked for as well.
Product Liability
Product liability insurance is important for those businesses where injury, harm or sickness can be caused by a product manufactured by the business. Claims against defective products can be covered under this type of business insurance UK cover. It is considered to be a specialist cover.
Professional Indemnity
We live in times when it is easy to sue businesses and claims are made for huge amounts on damages. Complaints can be filed by direct or in-direct consumers and this is why having a professional indemnity insurance cover really helps. This type of business insurance UK will offer protection against any kind of legal action taken by consumers who feel that they have been on the receiving end of negligent services or who have incurred losses due to such services.
Key Man Cover
This type of business insurance UK cover will provide protection to loss of income by covering some of the key employees. So if a key employee of your company is injured in an accident then the policy will cover the short-term financial loss and thus reduce the overall impact.
Business Interruption
Business interruption is a specialized business insurance UK plan that will cover short-term interruption in business leading to loss to income. The business interruption cover will provide financial protection against any short-fall in gross profit and pay increased working costs during the period the business is interrupted.