Why do I need limited company insurance?
It is normal for the owner of a limited company to experience the odd setback whilst they are in business, particularly if they have been trading for many years. Hopefully none of these setbacks cause a major impact but any business is, to an extent, exposed to natural disaster and accidents. Just like life, business can be a bit of a roller coaster at times.
A level of limited company insurance is required by law, whilst additional levels of cover give you the peace of mind to sensibly manage any risks and also meet the statutory demands of specific contracts or associations.
Your business must be sufficiently insured to protect your staff and yourself, plus your day to day business activity and your premises.
What types of insurance are there for a limited company?
Limited company insurance is available to cover almost every eventuality in business. Policies often include:
- Building and contents insurance
- Vehicle insurance
- Directors and officers insurance
- Key man insurance
Other types of business insurance are incorporated within limited company insurance, including:
- Employers’ liability insurance
Limited company insurance has to include employers’ liability insurance in case of injury or even death to an employee working on company business. This type of policy will cover all your legal costs and the compensation if needed.
However there are some exceptions to be aware of:
- Limited companies with a sole employee who has at least fifty-fifty share capital
- If you are self employed, and the sole employee. Alternatively, if you only employ family members
It is advisable for your limited company insurance policy to include professional indemnity insurance if you provide a professional service, handle client data and intellectual property or give advice.
- Public liability insurance
Public liability insurance needs to be included under your limited company insurance umbrella as it will protect your limited company against property damage and injury claims made by members of the public or your customers.
- Business interruption insurance
Also known as business income insurance, business interruption insurance covers your business against loss or damage as a result of a fire, flood, theft or act of vandalism. The policy will cover any loss of revenue whilst your business is unable to trade.