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If you are running a
business in the UK, or you are thinking about setting up a business,
you may not be aware of some of the risks that can potentially
damage your profitability. Business owners are exposed to a wide
variety of risks, so UK business insurance is necessary to ensure
There are three main classes of UK business insurance: Liability;
property and structures; and contents, such as business equipment
and supplies. It is important to carry each of these three types of
insurance. While some types are required by law, others are simply
necessary to protect a business owner's assets.
As a business owner, there are several types of liability that you
should carry. First, if you have employees, you are required by law
to carry employers liability insurance. This protects your employees
in the event of an injury, accident, or illness that occurs as a
result of performing job duties. The current minimum limit for
employers liability is 10 million pounds.
You should also carry public liability coverage. This type of UK
business insurance protects any person, other than your employees,
from bodily injury, illness, or property damage that you cause. The
typical limit for this type of coverage is 5 million pounds.
Another important type of UK business insurance is product
liability. This coverage pays for damages caused by a defective
product. This coverage is critical if you manufacture products for
sale to the public, but it is equally important if you sell products
manufactured by another company - retailers are sometimes held
liable for damage caused by products manufactured elsewhere.
In some cases, professional indemnity is a required coverage. This
protects you from paying damages if you are sued by a client who
believes he has received bad or negligent services. This coverage is
especially important if you provide professional services, such as
Property and structures insurance protects you from loss if any
place used for business is damaged or destroyed. It typically does
not cover the contents of these buildings. Typically, only specified
risks are covered, such as fire, lightning, or the explosion of a
boiler or gas line; however, you can purchase an "all risks" policy
that will significantly expand the scope of coverage.
Contents coverage pays for goods and supplies that become damaged.
Business equipment, goods in storage, and retail inventory are all
covered by this type of UK business insurance.