To help simplify things, here are some of the most frequently asked questions about business insurance that we receive. If you have any questions that you need answered, you can call us for free on 0800 1696137, email us at insure@ashburnham-insurance.co.uk… Or Tweet us at @ashburnham!
Is Business Insurance a legal requirement?
Employers’ liability insurance is compulsory by law if you employ any staff, and some professions with professional bodies and memberships may require you to have liability cover. Otherwise, public liability insurance is not a legal requirement but is highly recommended to protect your business.
What is Business Interruption Cover?
Business interruption insurance provides cover should you lose income as a result of your business being unexpectedly unable to trade for a duration of time due to theft, fire damage or flood that may halt your business activities.
Are subcontractors covered on my Employers’ Liability Insurance?
If you hire labour-only subcontractors (LOSC) who work under your direction using your equipment then they are legally under your employment and will need to included in your employers’ liability insurance. However, bona-fide subcontractors (BFSC) are those you hire for their expertise to work under their own direction using their own equipment and are not legally considered to be your employees. They will therefore have to provide their own insurance, but business insurance will often cover you against any claims against you as a result of the work completed by your subcontractors.
What is considered “buildings” and what is considered “contents” in Office Insurance?
Buildings insurance covers the physical aspects of the property, including fixtures and fittings. Contents insurance covers all items within your office that are not fixed to the property. Such as computers, furniture, and other office equipment that you rely on for your business activities. Office insurance policies combine the cover against damage to buildings and contents, as well as other extras that you would like to combine in the insurance package.
What is an excess?
The excess is the amount that you will have to pay towards the value of a claim, and the insurer will pay the rest. For example, if your office insurance is worth £4500 with an excess of £500, then you will pay the initial £500 and the insurer will settle the remaining £4000. Most business insurance policies will have an excess, with the exception of employers’ liability insurance.
The excess is usually decided by the insurer based on historical claims and the nature of the risks.
Can I get an insurance policy for multiple trades?
You will be asked for your “primary trade” which should be what you consider to be the main activity of your business, but will often be asked for secondary trades should the primary trade category not accurately or fully encompass your business activities. We understand that not everyone’s businesses fit into neat little boxes.
Don’t forget that just because you can’t see your trade listed on the quote form doesn’t mean that it’s not covered! With an unlimited number of different trades, it would be a headache to list them all – even more so for our customers to comb through them! If you give us a call on our freephone (0800 1696137), then we can provide you with a quotation for your specific trades.
Can I get insured if I don’t have a company name or registered business?
You can purchase business insurance prior to registering your business, or take out insurance as a sole trader with no need for a registered business. Sole traders do not have to give a company name when purchasing business insurance, but limited companies will have to. You may decide later on that you are ready to start a limited company. When getting a quote, you will be asked about your business structure.
You may find our Guide to Legal Structures for Business helpful.