Types of Business Insurance

There are several types of business insurance policies you can purchase if you are a merchant operating in the UK. Some of these policies are mandatory by law for every merchant to carry, and some policies are purely for your protection in the event of a lawsuit, or legal action, therefore, they are not mandatory. Before you hire your first employee, and before you can sell your first product from your store front, you must have your coverage in place, and protecting your investments.

It is mandatory in the UK that every merchant, whether they manufacture a product, or they are in the advice business, carry employee liability coverage, and public liability coverage. You have to provide coverage for any person that is employed by you in the event they are injured, they become ill, or they should die, as a direct result of their job duties, or of something at your place of business. You also must provide a policy that will cover the expenses of any client, or customer that is injured, or becomes ill as a result of your product, or while they were on your premises. If you have just mopped the floor, and not put out a wet floor warning sign, and someone slips and hurts them self, you are responsible for that injury. If during the fall the person broke their eyeglasses you would be responsible for their property damages. So these policies protect you as much as they provide for employees, and customers.

Product liability coverage, unlike general cheap business insurance, is mandatory in the UK if you manufacture any type of product. People can make the claim that the product you manufactured cause damage to their property. You must have product liability coverage that will pay for the damages, if it can be proven in court that your product did cause them. Lawsuits, and court proceedings can get very expensive, and they can wipe a small merchant out of funds to operate their enterprises. The coverage does not just protect people who buy bad products, it protects merchants from people who are less than truthful, and sue others on fraudulent claims. Unfortunately not all people are honest, and we must protect our investments against those that would take advantage of us.