Business Insurance Explained

If you have just started a new enterprise or have been asked to look after the company's insurance renewals, business insurance can at first seem a daunting proposition. After all, much of the language and industry jargon such as endorsements, indemnity levels and excess periods can at first appear alien.

Then there is the question of knowing what covers to get.

With the responsibility of ensuring that the business activities and property are completely covered from risks that the firm might face, a new small businessman may well also be confused by the plethora of covers, plans and policies that are available today.

Business insurance is however fairly simple even for newbies, if you break it down from the top.

There are basically two types of risk that a business may face in daily operations, these being business property risks and business liability risks.

All business insurance policies contain elements of the two risks either separate or combined under a single plan. If you need cover for business buildings and premises contents, you will need property insurance. If you need cover for the work you do, you will require liability insurance. Most businesses need elements of both.

Business property buildings insurance protects all risks to a business premises covering loss,material damage and consequential loss to all buildings, outbuildings, fixtures and fittings on the premises. The premiums are calculated on rebuilding costs of the business property and will also contain elements of public liability to protect a business against claims from the public of for example, a wall falling on a passer-by.

Property contents insurance covers loss or damage to the contents of the business premises. Business contents policies typically have provision to cover items such as furniture, tables and desks, computer equipment, telecommunications equipment, business electronic equipment, data, tools, machinery, stock, high risk stock, raw materials, fabricated, assembled, manufactured or stored goods and anything used in the daily operation on the business premises. Freight, cargo and goods in transit cover options provide insurance for the businesses property away from the premises.

Business property insurance polices are typically marketed by the type business property they provide insurance for. For example office insurance, shop insurance, hotel insurance and pub insurance are popular commercial property insurance schemes which contain all the relevant covers for each use of the property type.

Much commercial property is either rented or leased, in particular offices and shop space. Business insurance provides specialist cover for property owners of these types of premises with a let property insurance policy, which is tailor-made for business landlords.

Liability Insurance protects a business against all liabilities that the enterprise might be liable for as it carries out its daily actions. Liabilities are events which occur that could lead to claims against the proprietor, trader, owner, partnership or company. Liability insurance cover protects the company profits against all damages and costs incurred resulting from the claim.

Business Liability Insurance includes Public Liability Insurance, Employers Liability, Products Liability, Directors and Company Officers Liability and Professional Indemnity Insurance.

Public Liability protects the business profits against claims from members of the public and this cover forms the basis of a standard business insurance contract.

If you employ staff you will require by law Employers liability insurance which protects your business against claims resulting from accidents and injuries to paid employees and sub contractors whilst anywhere at work.

If you sell or provide goods or parts your business will need Products liability insurance.This cover is usually automatically included in for example, a shop insurance policy.

Nearly all business insurance polices sold, in particular those online, are what is known as combined business insurance or trade packages that have been specifically designed for particular trades or professions. Find one that is suitable for your particular company by carrying out a search for your trade, service or profession insurance. These combined business insurance policies contain all the covers you will need in your line of work, ensuring that if a claim against your company is made, you will be covered.

The company owners or directors can also purchase Directors & Officers Insurance or D & O insurance as it is often called, which covers them personally against both civil and criminal liabilities resulting from business activities.

Additionally professional services should purchase Professional Indemnity insurance which covers the service against the liability of any advice that might be given professionally and later turns out to be negligent.

Business Insurance quotes from top brands and providers, offering the cheapest prices and excellent cover, only take a minute to compare at leading business and commercial insurance comparison site UK Commercial Insurance.

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Builders Insurance Explained

Builders Insurance is designed to cover self-employed builders, small building firms and building tradespeople against all potential liabilities they and their staff might face in the daily course of building works.

A typical package will always contain public liability insurance to guard against all claims for loss or injury made against the builder by clients and members of the public.

Additional optional covers include Employers liability, which is a legal requirement if the builder employs full- time staff and bona-fide sub-contractors, tools insurance which covers all the builders tools on or off site and Goods in transit cover which covers damage to goods and materials in transit to and from a building site.

Most policies will include Products liability as standard cover. This covers the builder against any defective materials he may have supplied.

All builders will require public liability insurance because of the numerous amount of accidents and losses that can occur at a builders workplace.

At ground level all sorts of risks present themselves for which the builder could be held liable.

Electric cables, tools, power tools, toolboxes, building materials such as limestone cement, paint and other chemicals, moving machinery, pollution risks and damage to neighbouring property, are all real risks of building activity, from which all too frequently accidents occur injuring other workers on site, clients or members of the public.

All builders insurance polices ask about the types of building work you do and especially about whether you work at height.

Scaffolding, timber, bricks, walls, roof tiles or even paint pots falling from height can seriously injure or even kill members of the public or other site workers.

A typical builders insurance policy or liability package classes the type of risk into different height defined types each with their own policy clauses and restrictions. A further division is made by the type of property that the builder usually works on, either private houses or commercial buildings.

Builders who work on single storey extensions and do groundwork and interior alterations to private houses and buildings, are considered the lowest form of risk by the underwriters. The cheapest policy available on the market would be for a sole-trader builder or handyman who does this type of work and only requires Public liability of one million to cover on-site risks to clients and the public.

A second class of builders insurance is for small building firms or sole traders with or without sub-contractors, who work on private houses and new builds. The height restrictions for this type of cover are usually set at two storeys or ten metres to allow for taller townhouses. This is the most popular form of small builder insurance and covers the majority of firms and sub-contractors working on new housing estates and private self builds.

The commercial builder class covers small to medium-sized building firms who work predominantly on commercial property such as offices, shops, pubs, hotels, government buildings and projects and also large blocks of flats and private condominiums.

Public liability insurance for these companies is usually set at ten million for any one event, as required by the contract conditions for this type of work. An expensive extension to this cover but often necessary one, is that of working in hazardous environments, such as in industrial plant or at extreme heights.

If a builder uses heat in the course of his work, for example using a blow torch on metal pipe work, this presents a much greater risk to the building from fire and quotes and premiums offered will consequently be much higher. Insurers may well also demand higher levels of liability limits to cover heat work.

Aside from any statutory regulations and contract commitments, if a builder employs any labourers, ground workers, bricklayers, carpenters, roofers, glaziers, plumbers or painters and decorators, even on a temporary or part-time basis, they would be foolish not to have employers liability insurance cover.

Unfortunately accidents to workers are all to common on building sites, second only to farms in terms of risk. Workers can be seriously maimed or injured and will undoubtably turn to their employer as responsible.

Finally builders should not forget to cover their tools against theft loss or damage. Replacing a cement mixer will cost more than the average builders insurance policy premium. Most policies allow the proposer to set the level of indemnity cover for the value of the tools. If claims for loss of tools are made the Insurance company will often reduce the claim amount paid, for wear and tear.

An all risks builders liability and tools insurance policy can be purchased relatively cheaply currently as it is a class of business commercial insurance companies want to encourage and offer competitive rates for. For this reason it pays builders to shop around for cover and the Internet provides offers from all the top underwriters and insurance companies with online quotation systems.

UK Commercial Insurance allows builders and building trades to compare builders insurance from up to twenty leading builders insurance companies from Axa to Zurich. Save time and money comparing quotes at the UK's largest builders insurance comparison website.

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