Any business that has one or more employeesmust have employers’ liability insurance to insure the liability of thebusiness against any injuries or damage to health caused to employees that isrelated to their employment. Apart fromthis requirement it is not required by law that business owners of privatelyowned companies take out additional business insurance, however from apractical point of view it is virtually impossible to take out employers’liability insurance as a stand alone policy. In by far the majority of cases itis an inclusion of a more general business insurance.
Even if this was not the case, it isadvisable for most business to take out Business Insurance. Essentially business insurance mitigates a large range ofrisks for a relatively modest cost. Naturally if the business has its own premises or any expensive assets,then it would be foolish to not insure these against the standard risk of fire,theft and vandalism. If the business is dependent on a few highly trained keyemployees than key man insurance is advisable. But there are many other riskswhich if included in the cover can considerably reduce the overall level ofrisk in which the business operates.
Essentially business insurance is a form ofrisk management and all risk management exercises should start with anassessment of risk. Sometimes hot allrisks are immediately apparent to even the business owner, so a proper riskassessment should also involve the employees of the business. Once all therisks have been identified, steps should be taken to minimise them andpotential costs should be associated with them. Such risk assessment exercises are required by law.
Armed with this information the businessowner should talk with the insurance provider to put together an insurancepolicy that will cover the identified areas of risk and calculate the insurancepremium payable. This honest and open approach removes any risk associated withthe insurance company claiming non-disclosure of relevant information shouldany future claim be made.
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