Here are some of the most frequently asked questions concerning business coverage and answers to them:
1. Should I disclose all the details about my business when getting it insured?
The insurance company should be fully aware of your business’s operations, assets and property in order to provide you with the right type and amount of coverage that would be reasonable for your enterprise. In most cases when the insurance company is misinformed about the activities and belongings of the business any insurance policy is canceled (sometimes with a substantial fine).
2. Do I have to show my wages?
This information is required by the insurance provider in order to calculate the possible liability to others as well as the size of your enterprise.
3. Is landlord insurance required if my business uses lent property?
This entirely depends on your contract with the landlord. Some landlords will have all their property and buildings ensured with their own policy and this means that you do not need to insure it separately with your business policy. Other landlords won’t provide any coverage, so you’ll have to insure the property for yourself. Also, make sure to analyze the loan contract in order to define which circumstances are covered and which aren’t.
4. Is public liability insurance a must?
Of course, you can go off without it but in our litigious age when a lawsuit on business can be filed any day it will be not quite bright from the business owner’s part. Public liability will cover your court fees and payouts awarded if you are found guilty, and taking the fact that only lawyer expenses can account thousands and tens of thousands of dollars, this type of business insurance is particularly useful.
5. My business is small and only my family members work for it. Do I need employer’s liability insurance?
The Employers Liability Act of 1969 makes an exception on family members for employer’s liability insurance. However, if you operate as a limited company then you should cover all the employees, no matter how are you related to them.
6. My stock is limited, can I only cover liabilities?
Yes, it is possible, however business insurance is usually employed for other aspects as well, such as loss of profits, damage to immovables, equipment, public liability and much more. So make sure to get adequate insurance for all activities you business is involved.
7. I’m a product seller. In case a customer is injured by the product I sold that was defect, does my business insurance pay for that?
In most cases public liability insurance includes product liability coverage to various extents.
8. Does public liability insurance cover me in cases of errors and omissions of my business?
Public liability will only cover injuries or damage resulted from a defunct product. If you need a greater extent of this specific coverage or are providing services then it is recommended that you purchase errors and omissions insurance and add it to your business insurance policy. This type of insurance will be very useful for businesses that are involved in production of goods.