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What Insurance Do You Need As A Small Business Owner?

October 1st, 2017 10:16 pm

Insurance can be a confusing and difficult topic at the best of times, but even more so when you’re just starting out as a small business.

With so many different types on offer and so much business jargon flying around, it’s hard to get to the bottom of what you actually need and what you don’t.

However, whether you’re going solo or managing a team, you need to make sure you’re covered should the worst happen.

While there are lots of different insurance policies out there, there are a few key ones that every small business owner should consider.

Here, we give you the rundown of the essentials and some common specialist insurance types.

Employer’s Liability Insurance

By law, if you employ one member of staff or more you must take out an Employer’s Liability policy. There are some exemptions, such as non-limited family businesses, but the vast majority of cases are legally required to do this.

As the employer has a general duty of care towards their staff, this insurance effectively covers your employees and sets out your liability towards them, should anything happen to them as a result of their employment with you such as illnesses or injury.

Nearly all businesses are required to hold a minimum cover of £5 million, which can be used to cover any compensation or legal action should an employee make a claim against you.

Construct A Quote advise that: “All business owners who employ any members of staff should take out this insurance as soon as possible. You can be fined up to £2,500 a day for cover that is absent”.

Public Liability Insurance

As with the above insurance, this one covers your liability towards members of the public and their property.

While it is not a legally required policy, if your business comes into contact with outside individuals in any way then it’s highly recommended that you consider this policy.

This covers any incidents that might affect the public or their property linked to your business. For example, if you own a deli and a customer trips over a loose wire, they may take legal action. Similarly, if you own a construction business and someone’s car is damaged during a project, they may be entitled to compensation.

This insurance can be used to cover all legal costs and compensation from your business.

For more information on whether you need public liability insurance, see this post by Start Ups.

Professional Indemnity Insurance

This insurance covers your business from any claims made against you by customers who believe that your recommendations or services have lost them money.

Again, while this isn’t legally required by most professions (although some regulatory bodies do require this such as lawyers and accountants), it’s highly recommended to any business providing advice or services to customers.

This insurance covers a number of aspects, including a breach/negligence of professional duty; misrepresentation or misstatement; breach of confidentiality; and employee dishonesty.

This can be particularly harmful to small businesses who often won’t have the legal capacity to take on claims, and so this insurance can cover any compensation or legal fees.

For more information on this type of insurance, see this guide.

Specialised Insurance

There are also a number of specialist insurance policies that will only affect particular types of business.

For example, if you are a construction business or tradesman, it would be recommended to get a Goods In Transit policy to cover your equipment and materials.

Similarly, if your business is renting houses, you will need specialist landlord insurance as standard building and contents insurance is not adequate for this type of cover.

If your business uses vehicles as part of your service, you will be required by law to get Third Party insurance or ‘fleet insurance’.

Finally, cyber insurance could be key for an IT company, which covers you from cyber-crime and risks.

If you’re unsure, it’s best to check with professionals what your type of business needs to ensure full cover.

Why Get Pet Insurance At All

September 1st, 2017 11:53 pm

Our pets are an important part of our family and as such they deserve the best care that we can give to them. Unfortunately veterinary medical costs is rising everyday and the only way we can afford to pay for them is by purchasing pet insurance for our pets.

There are a number of things that you need to consider before you make a definite decision as to if you should really purchase pet insurance. Here are some tips that may be useful to you:

1) You should assess your monetary circumstances. Pet insurance can be expensive depending on the plan that you choose.

2) You need to consider whether or not you own a pet that needs special medical treatments. In most of the cases to buy pet insurance, you will not have to provide a medical history before you can obtain coverage which means your pet can get coverage regardless of the previous medical history.

However, as pets get older, depending on their breed they might start to show signs of various old age diseases such as hyperthyroidism.

Therefore if your pet is ten years old or older you will still be able to purchase pet insurance but the insurance company will most likely need to look at your pet’s medical records. You may need to pay for premium rates which are higher but can still save you a lot of money in medical expenses since older pets tend to have more health problems.

However if your pet is at least middle-aged and in good health you most likely do not need pet insurance. The pet will need yearly veterinarian checks, but the cost of that is far less than the cost of pet insurance.

There is another reason to purchase a pet insurance if you are dealing with pure bred dogs, especially if you decide to show the dog. The appearance of these dogs depends very much on their health, so it is very important that they have the proper insurance.

In addition if you have a dog that has done work in the movies, and if the dog gets sick it affects filming, it is also important that the dog has health insurance. The insurance will benefit you just as much as it will benefit the dog in this case.

3) You should shop around to find the best pet insurance company. Some things you want to look out for are:

i) how much the company charges per month,

ii) the size of the coverage,

iii) the vets you are limited to, or if you are limited to any vets at all, as well as

iv) what is covered by the policy should your pet need medical assistance. One of the most important things you want to note is the coverage when it comes to pet medical emergencies.

The Coverage

There are pet insurance policies for all kinds of pets. It is a common misunderstanding that pet insurance policies only cover cats and dogs but there are, in reality, policies out there to protect any pet, no matter what kind it is.

Many pet insurance policies will provide coverage for everything from routine office visits to emergency surgery. There are a vast variety of plans available for you to choose from. Basic plans will cover things such as accident or illness, prescription drugs, x-rays, hospital stays, and even treatment for chronic diseases.

Higher packages such as premium coverage is available which also helps with routine vaccinations, annual office visits, flea and tick control, and other preventive measures. The good news is that most of these premium policies will even cover hereditary conditions such as skin disorders and back problems.

All You Have To Do

With many pet insurance companies the only thing you will be asked to do when your visit at the vet is done is to pay your portion of the bill. The rest of the bill will be paid to the vet directly by the insurance company. If however your vet does not accept this mode of payment then you will need to turn in the bill to the pet insurance company yourself. Most companies will process your claim within the week and return your money to you in a timely manner.

Some pet insurance companies require you to pay a deductible before insurance coverage begins. Some companies offer deductibles as low as fifty dollars while others can cost over a hundred dollars. Fortunately there is only one deductible for each year of coverage.

There are many companies that now provide the service of pet insurance so you should have no problem finding a policy that fits within your budget. You can ask your vet for pet insurance information or call an independent pet insurance company that you can source online. Remember to shop around to ensure that you are getting the lowest priced premiums available.