Many people regard purchasing business insurance as a (necessary) evil as most company owners thankfully have not had to rely heavily on their Business Insurance Policy. In truth having the correct business, insurance gives peace of mind that in the event of an unforeseen catastrophic event the future of the company and therefore the income of the owners and the employees are protected. Companies are built up over years and sometimes generations and all this can be wiped out in one fell swoop. Choosing the correct Business Insurance Brokers always pays off when you have a claim (big or small).
To comply with the law
Some Insurances are a legal requirement. If you own or operate any vehicles in a public place you will require motor / Road Traffic Act insurance. This might be a car insurance, Commercial Vehicle Insurance, Fleet Insurance Policy or Special Types Insurance. If you have a forklift that operates in an area that falls under the definition of a public place under the Road Traffic Act you must have motor insurance on it by law. Not knowing that you needed a certain type of insurance is not a valid defence in the eyes of the law, find out more about EU business laws.
Having the correct Business Insurance makes your Business Look more Credible
If you are competing for business with other similar companies you can increase your credibility with prospective customers by being able to demonstrate a higher level of professionalism by having the correct insurances in place with the correct Limits of Indemnity. Many companies do not have the correct insurances in place to protect themselves, their Employees or their Customers. It is becoming increasingly common for prospective customers to seek confirmation of Public Liability, Products Liability and Employers Liability Limits of Indemnity. We are also finding that it is now almost becoming the norm for proof of Professional Indemnity cover to be provided.
Should one of your employees be injured in the course of their work Employers Liability Insurance will cover you in the event that they bring an action against you alleging negligence leading to Injury or Damage. The average cost of an Employers Liability claim in Ireland is well over €20,000. When you see the types of injury that can occur in the workplace – ranging from very minor up to life-changing and even fatal you see the importance of being fully insured for employers liability. The standard Limit of Indemnity on an Irish Employers Liability Policy is €13,000,000. Also, if you are an online business, remember to consider the many cover options available to you.
Having the correct Business Insurance Protects your Products & Assets
A business can be built up over years and accumulate assets including plant and machinery, equipment, stock and the buildings as well. In the event of a serious fire or major storm or flood damage, it is essential that the business can claim on their property insurance policy. Most businesses would struggle to recover from a serious property loss due to fire if they did not have insurance in place to protect them. Equally as important as property insurance is Business Interruption Insurance. BI Insurance is also known as consequential loss insurance and it covers the loss of profits resulting from an event that leads to a claim under the property insurance. For example – a wholesale business that has its warehouse full of stock in preparation for Christmas. If there are a fire and the warehouse and all the stock are destroyed this will be covered by the Property Insurance but the insured will not have anything to sell and may go out of business. The Business Interruption Insurance will cover the loss of profits resulting from the fire for a period of either 12, 24 or 36 months depending on which option was chosen when the policy was set up. As you can see from this the correct Business Insurance Policy can guarantee the survival of your company in the event of a life-changing event.
What are the Main types of Insurance for Available for Businesses?
| PROPERTY | |
| Fire & Specified Perils | Loss or damage to insured’s physical assets caused by fire or other specified perils. |
| Terrorism | Physical loss or damage to physical assets by any act of terrorism |
| Glass Breakage | Loss or damage to fixed glass (including neon or signage if requested) by breakage resulting from a specified peril. |
| Computer | Loss or damage to computer or ancillary equipment caused by a specified peril |
| Money | All risks loss to money including damage to safe / strong room |
| Marine / Goods In Transit | Loss or damage to the subject matter whilst in transit |
| Contractors All Risks | Covers the cost or reinstating works under construction where it is damaged by fire or other specified perils |
| Claims Costs | Covers the costs of hiring professionals with a view to presenting a claim to underwriters |
| Small Businesses | Insurance for small businesses applies to the same categories as mentioned here |
| BUSINESS INTERRUPTION | |
| Fire & Specified Perils | Loss following interruption to the business due to damage to property caused by fire or other specified peril |
| Terrorism | Loss resulting due to necessary interruption to the business arising from any act of terrorism |
| Increased Costs of Working | Additional expenditure necessarily incurred as a result of a specified peril |
| Rent Payable / Receivable | Financial loss incurred due to a continuing obligation under lease to pay rent or a restriction from receiving rent on a premises under lease that has been damaged by a specified peril |
| Book Debts | Covers losses in respect of the inability to trace debtors following the breakdown of computer equipment by a specified peril. |
| Loss of Revenue due to Computer Breakdown | Loss of revenue or increased costs incurred following the breakdown of computer equipment by a specified peril |
| LIABILITIES | |
| Employers | Covers the legal liability for bodily injuries to any of your employees or diseases caught by them arising in the duration of their employment in the company |
| Public | Covers legal liability which results from bodily injuries which are accidental to any third party person or loss of or destruction to their premises arising in the connection with the business. |
| Products | Covers liability for bodily injury related to accidents to any third party person, or loss/damage to their premises, caused by any sort of defect found in goods sold, serviced, needing repairs, changed, treated or supplied in connection with the business |
| Products Guarantee / Tamper / Recall | Provides cover for failure of the product to fulfil its intended function which is not covered by a Public/Products Liability policy |
| Design Liability | Liability arising from design work carried out for a fee |
| Directors & Officers | Covers legal action against individual Directors or Officers for carrying out alleged wrongful acts in the management of the business. The cover includes reimbursement to the Organisation where they are legally obliged to indemnify an individual Director or Officer |
| Employment Practices Liability | Covers claims brought by any of their current or previous employee for a broad range of employment linked accusations including the following: – Wrongful or unfair dismissal, discharge or termination of employment – Harassment – Discrimination, including race and sex discrimination |
| Professional Indemnity | Covers claims arising from negligent acts, errors or omissions in the course of professional services provided for a fee. |
| Libel / Slander | Covers Legal Liability for third party damages, costs and expenses resulting from claims alleging libel, and/or slander to title goods, and/or infringement of trademark, registered design, copyright, patent right arising from matter contained in specified publications. |
| Wrongful Arrest | Covers legal liability to pay damages in respect of wrongful arrest and false imprisonment, committed or alleged to have been committed by you or any person employed by you or on your behalf. |
| Pension Trustee Liability | Covers claims against the trustee’s alleging negligent management of Pension or other Fund affairs |
| Legal Expenses | Covers legal costs incurred in defending/maintaining legal actions for example in property/ contract/employment law disputes |
| Environmental Liability | Liability arising from pollution or environmental damage and/or contamination, which is sudden, unintended and accidental. It does not cover gradual pollution nor deliberate acts. |
| Cyber Liability | Legal liability to pay damages to third parties arising out of the performance of online / software activities due to one of the following:
– Libel or Slander from the use of email – Damage to websites/networks from unauthorised access – Loss of business income from hacking/denial of service |
| Marine Liability | Covers legal liability to third parties or property damage arising out of marine operations. |
| MOTOR | |
| Motor | Legal liability arising out of the use of a mechanically propelled vehicle causing bodily injury and/or property damage to third parties. The cover can be extended to include damage to own vehicles caused by an insured peril. |
| Contingency | Legal liability to pay damages, as a result of bodily injury and/or property damage to third parties arising in connection with the use of employees own motor vehicles, not the property o the insured but being used in connection with the insured business. |
| Special Types | Motor insurance can be arranged for special types of vehicles such as forklift trucks, factory trolleys, cranes, dumpers, road rollers and tippers where the use of the plant in a public place involves compulsory third party insurance as required by the Road Traffic Acts. |
| ENGINEERING | |
| Statutory Inspection | Covers third party inspection of plant/equipment to comply with legislation. |
| Engineering (Miscellaneous) | Cover is available for fragmentation / breakdown / explosion / sudden & unforeseen damage to plant / damage to surrounding property / explosion and third party liability. |
| Hired In Plant | Legal liability in respect of the use of hired in plant |
| MISCELLANEOUS | |
| Personal Accident | Cover for accidental bodily injury and or illness sustained by insured persons resulting in death or disablement during the operative time. |
| Travel | Covers expenses incurred on trips outside of the country of domicile |
| Credit | Covers insolvency of an insured buyer and/or protracted default of an insured buyer |
| Fidelity Guarantee / Crime | Covers financial loss as a result of fraud or dishonesty by employees acting alone or in collusion with others or committed by any other person. |