If you run a business in Harlow or the surrounding Essex area, having the right insurance in place is an important part of protecting your business but knowing exactly what cover you need isn’t always straightforward.
Every business is different, which means business insurance isn’t one-size-fits-all. The cover needed by a local shop or salon could look very different from that of an office, construction company or growing business with multiple employees.
At CoverMy, our entire team is based in Harlow, Essex. We work closely with local business owners, whether that’s over the phone, at our Harlow office or by visiting your business to better understand how you operate.
In this guide, we’ll explain the key types of business insurance, when you might need them and what you should consider when protecting your business.
Why Does Your Business Need Insurance?
Even a well-run business can experience situations outside of its control.
A customer could be injured on your premises. Equipment could be stolen. A fire could damage your building or stock. An employee could make a claim against the business. A cyberattack could disrupt your systems.
Without appropriate insurance, the financial consequences of incidents like these could fall directly on the business.
Some forms of business insurance may also be legally required depending on how your business operates. For example, most UK businesses that employ staff are required to have Employers’ Liability Insurance, subject to certain exemptions.
Other types of insurance may not be compulsory but can still provide valuable protection against risks that could otherwise leave your business facing significant costs.
The important thing is identifying the risks that actually apply to your business.
What Types of Business Insurance Might You Need?
Business insurance can combine several different types of cover depending on how your business operates. Your industry, premises, employees, equipment, customers and the services you provide can all affect the protection you may need.
Some of the key types of business insurance we’ll cover in this guide include:
- Public Liability Insurance – for claims involving injury to members of the public or damage to their property.
- Employers’ Liability Insurance – for businesses that employ staff.
- Buildings Insurance – protecting business premises you own.
- Business Contents Insurance – covering equipment, furniture and other business contents.
- Stock Insurance – protecting stock your business holds.
- Business Interruption Insurance – for certain financial losses if an insured event prevents you from operating normally.
- Professional Indemnity Insurance – for businesses providing professional services or advice.
- Cyber Insurance – protection against certain cyber incidents and digital risks.
Read on for a closer look at each type of cover, real-world examples of when it could be needed, and what you should consider when deciding which insurance is right for your business.
Public Liability Insurance
Public Liability Insurance is relevant to a wide range of businesses because it provides cover for claims involving injury to members of the public or damage to their property arising from your business activities. This could include customers and clients, but also suppliers, contractors, visitors or other members of the public you encounter while working.
For example: If a customer slips on a wet floor in your shop and suffers an injury, they could make a claim against your business. Public Liability Insurance could cover eligible legal costs and compensation, subject to the terms of your policy.
But claims aren’t always as obvious. Imagine you’re a tradesperson working at a customer’s home and accidentally damage an expensive piece of their property, or equipment belonging to your business causes someone to trip and injure themselves while you’re working away from your own premises. These situations could also result in a claim against your business.
This is why Public Liability Insurance is worth considering for almost any business that has contact with members of the public or their property — whether that happens at your premises, at a client’s property or while carrying out work elsewhere.
Employers’ Liability Insurance
If your business employs staff, Employers’ Liability Insurance will usually be a legal requirement.
It can provide protection if an employee becomes ill or is injured because of the work they carry out for your business.
For example: An employee working in a warehouse suffers an injury while carrying out their normal duties and later makes a claim against the company. Employers’ Liability Insurance may respond to eligible claims and associated legal costs.
Businesses that are required to hold Employers’ Liability Insurance generally need cover of at least £5 million from an authorised insurer.
Buildings Insurance
If your business owns its premises, Buildings Insurance can help protect the physical building against insured events such as fire, flood and other types of damage covered by the policy.
Consider how disruptive a serious incident could be.
For example: A fire causes extensive damage to a business premises, requiring substantial repairs before the company can operate normally again. Without suitable insurance, the cost of repairing the property could become the responsibility of the business.
If you rent your premises, the building itself may be insured by your landlord, but that does not necessarily mean everything belonging to your business is covered.
Business Contents Insurance
Computers, furniture, machinery, tools, stock and specialist equipment can represent a significant investment.
Business Contents Insurance can help protect these items against insured risks such as theft, fire or damage, depending on the policy.
For example: A break-in at an office results in several computers and other pieces of business equipment being stolen. Suitable contents cover could help with the cost of replacing insured items.
It’s important to accurately consider the value of everything your business owns. Underestimating replacement costs could leave you underinsured.
Stock Insurance
For businesses that hold stock, losing it could have an immediate financial impact.
Retailers, wholesalers, salons, restaurants and many other businesses can have thousands of pounds tied up in products or materials at any one time.
For example: A burst pipe damages a retailer’s stock overnight. Depending on the policy and circumstances, appropriate stock insurance could help cover insured losses.
Businesses should also consider whether stock levels fluctuate throughout the year, particularly if considerably more stock is held during busy periods.
Business Interruption Insurance
Business Interruption Insurance covers certain financial losses if an insured event prevents your business from operating as normal.
For example: If a fire forces a café to close for several weeks, property insurance may cover the physical damage, but the business could still lose income while unable to trade. Business Interruption Insurance can provide cover for eligible financial losses during this period.
It’s an important consideration when asking: how would your business cope financially if it suddenly couldn’t operate?
Professional Indemnity Insurance
If your business provides professional advice, expertise or services, you may also need to consider Professional Indemnity Insurance.
It can provide protection if a client alleges that a mistake, omission or negligent professional advice has caused them financial loss.
This could be relevant to consultants, designers, professional service providers and many other businesses whose clients rely on their expertise.
For example: A client claims that an error in professional advice provided by a business resulted in them suffering a financial loss. Professional Indemnity Insurance may help with eligible legal defence costs and compensation.
Cyber Insurance
Cyber risks aren’t limited to large companies.
If your business stores customer information, takes electronic payments, relies on computer systems or operates online, a cyber incident could cause considerable disruption.
Cyber Insurance can provide protection against certain cyber-related incidents, depending on the policy.
For example: A local business falls victim to a cyberattack that prevents staff from accessing important systems and compromises customer information. Appropriate Cyber Insurance could provide access to specialist support and cover certain eligible costs associated with responding to the incident.
As more everyday business activity becomes digital, cyber protection is increasingly worth considering alongside more traditional forms of insurance.
Is Your Business Properly Covered?
Having business insurance in place doesn’t necessarily mean you have the right level or type of cover. Businesses change over time, and policies arranged quickly online may not always reflect the full picture of how a business operates. Gaps in cover or underinsurance may only become apparent when a claim is made — when it matters most.
That’s why at CoverMy, we take the time to understand the business behind the policy. Our entire team is based in Harlow, and for our local business clients, insurance doesn’t have to be handled through an online form or with a different adviser every time.
Speak to Our Business Insurance Team
At CoverMy, we understand that every business is different. That’s why we take the time to understand how your business operates, the risks you face and the cover you may need.
Our entire team is based in Harlow, Essex, and our friendly, experienced business insurance team is here to support you. Speak to us over the phone, visit us at our Harlow office or, where appropriate, arrange for one of our team to visit your business and discuss your insurance requirements face-to-face.
Learn more: Visit our Business Insurance page to explore the different types of cover available.
Get a quote: Request a tailored business insurance quote online today.
Need some help? Call our friendly team on 0345 040 1945 and we’ll talk through your business and insurance requirements.
Prefer to message? Send us a message through our website or get in touch via our online contact form.
Based in Harlow or the surrounding area? Come and speak to us locally. We’re proud to build real relationships with the businesses we insure and be there when you need us.
Not local? No problem — CoverMy arranges business insurance for businesses across the UK.
