Business Insurance Checklist

Are you covered where it counts?

We all know the important of having insurance in place, but how much do you really understand about the cover you buy? Insurance can be tricky at times and often people don’t understand what they need or sometimes, even what is legally required. 

The most important aspects to consider are does it protect you from the things most likely to go wrong in the home care environment? And does it meet the sector’s legal and regulatory requirements? We always recommend speaking directly with a specialist insurance broker before getting covered and the following advice should help ensure you have the right cover for your business.

Mandatory insurances

In general some covers, such as Employers’ Liability, are necessary to trade legally. It covers your liability for bodily injury, illness, or disease to your employees. Many diseases develop over a long period and may not become apparent for some time. Employers’ Liability policies are normally underwritten on a “claims occurring” basis which means that the insurer who provided cover at the time the disease was caused must assume responsibility for paying the claim. Whilst there is no legal requirement to do so, Towergate currently recommends you keep your insurance records indefinitely.

Public Liability Insurance is designed to provide you with financial protection should a member of the public (including service users) or even another company, claim they have suffered as a result of your negligence or that of your employees. The basic cover is for sums you are legally liable to pay in respect of bodily injury, death, disease, illness or loss of or damage to property. Unlike Employer’s Liability, Public Liability Insurance is not compulsory although many insurance brokers will offer this cover as standard up to £5 million. Towergate offers this cover as standard up to £10 million.

What can you do to get the right protection?

As needs change, businesses grow, diversify, move into different areas, sometimes even downsize, and any of these things could have an implication on your insurance. That’s why we have put together these simple tips to get you started along the road to making sure you have the best business insurance which covers you where you need it most.

• Take the time to understand your policy and any jargon you don’t understand.
• Don’t be afraid to ask questions. For example do you know what Business Interruption or medical malpractice really means for your business?
• Check and double check the levels of cover you have. A good insurance provider will be happy to explain, and won’t want to put down the phone until they are sure you understand what you are paying for.
• Check the assumptions made in the insurance policy about how you run your business, as these could limit your cover. These assumptions can often be hidden away against in small print when you buy over the phone. Do any of them apply to you?
• Speak to your insurance provider if something changes in your business. Have you taken on staff, has your turnover increased or has the type of service you offer been extended?
• Remember, insurers set premiums to reflect the risk a business represents so it is important to demonstrate:
• Robust management and health and safety procedures are in place.
• Staff are adequately trained.
• Claims are the exception rather than the rule.

Where can I get advice?

If you want to check you have the cover you need, please call us on 01438 739739 where we will be happy to help you.

About the author

Alison Wild BCom (Hons), MAAT, ATT, Taxation Technician is a highly respected industry professional who has been working with and advising SMEs in areas including tax, pensions, insurance and marketing for over 25 years. She is a member of the Association of Accounting Technicians (AAT) and Association of Tax Technicians (AAT) and also has considerable experience as a residential landlord.