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Business Insurance

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 protection.

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 consultancy.

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.