Are You Covered for Your Business? How to Get Liability Insurance at No Cost or Low Cost
Liability Insurance;Every small business owner wants to be safe and secure while conducting their business. If you are planning to start any small business, it is advisable to get business liability insurance. Business liability insurance is a type of insurance policy that will cover you in case of any legal suit filed against you by a customer or an employee.
Business liability insurance protects you from the financial loss that might be incurred by you due to personal or business debts, court litigation, fines and legal expenses etc. As a business owner, you may not be aware of all the risks involved in your business, but it is necessary that you get business liability insurance.
Get coverage for your business without paying upfront premium
If you don’t have any prior experience of getting business liability insurance, it is advisable that you buy the basic plan. It is a better option as it is cheaper than purchasing the extended plan. When you opt for the basic plan, you can easily avail of a coverage of upto Rs. 1 lakh for property, upto Rs. 5 lakh for third party, and upto Rs. 25 lakh for general liabilities.
The coverages are optional so you can purchase one or multiple coverages depending on your requirement.
Benefits of buying the basic plan
The most important benefit of purchasing the basic plan is that you don’t have to pay any premium upfront. The premiums will be paid only if a claim is made by a customer or an employee. So, it is easier to manage the finances of your business.
If you are the sole proprietor, you can get the maximum cover of Rs. 1 lakh for property and up to Rs. 5 lakh for third party claims. If you have one employee, the coverage is limited to Rs. 25,000. So, you don’t have to worry about covering the legal costs and settling the claims.
If you have multiple employees or you are a franchisee, it is advisable that you get the extended plan. The extended plan covers you from a minimum of Rs. 1 lakh to a maximum of Rs. 5 crore. You can easily get a cover of Rs. 1 crore for business liability coverage. You will also get extra cover for your business assets such as computers, inventory, vehicles, etc.
The extended plan is expensive, but it will provide you with more coverage in case of legal disputes.
Get Liability Insurance For Your Business
Businesses require protection for risks associated with the business. Business owners will take risks when they engage in new business ventures. They might purchase expensive inventory or invest in machinery, etc.
It is good to have a liability insurance cover for businesses. A liability insurance protects the company against accidents or injuries. This means that if any employee is injured or there is a property damage or loss, the owner of the company will be compensated. This will protect the owner against liabilities.
In the UK, there are different kinds of insurance covers. A comprehensive policy is for the whole family. However, a commercial policy is required for a commercial use. You need to have an employer’s liability insurance policy for the company’s employees. If the business has an inventory or office equipment then you need to have an additional cover for these things. For example, if the office equipment is damaged then you can get replacement cost or replacement value insurance.
In the event of fire, the insurer will replace the equipment for the amount that is stated in the policy. You should not purchase an insurance policy if you are not using a certain facility. For example, if you are not a lawyer, you don’t need to have a lawyer’s insurance policy. If the policy is for a company, then you need to add another insured for each director.
I hope that you found this post informative. I am sure it will help you to decide whether you should purchase the basic plan or the extended plan for your business.