Specialist business insurance policies explained

In this, the final part of our guide we take a look at professional indemnity insurance and other specialist business insurance policies.

Professional indemnity insurance

Professional indemnity insurance is designed to protect businesses against compensation claims made by dissatisfied clients that could result in unexpected financial loss. In business disputes do arise, no matter how reputable a company is or how hard it strives to meet its clients’ or customers’ needs, and as these have the potential to run into many thousands of pounds professional indemnity insurance can provide valuable peace of mind.

What does professional indemnity insurance cover?

Your business could be exposed to a variety of risks including:

• Loss of documents or data
• Dishonesty, such as liability arising from theft of a client’s money or other assets by your staff members
• Negligence
• Intellectual property disputes, such as unintentionally infringing trademarks or copyrights

Depending on the individual policy terms, professional indemnity insurance may cover legal expenses incurred as a result of defending the claim, the payment of damages or the cost of putting right mistakes.

How much cover will I need?

This very much depends on the individual business and its exposure to the insured risks. Some clients may set a minimum limit for the indemnity they require and this may depend on the nature of the services you’ve been contracted to provide them with.

Other specialist business insurance policies

Depending on the type of business you operate, you may wish to take out extra protection by way of specialist business insurance policies. Your considerations may include:

• Goods in transit insurance  - to cover goods against damage whilst being transported between destinations
• Business travel insurance  – essential if you or your employees travel for business reasons
• Tool insurance  – to protect your tools, usually in transit
• A fidelity guarantee  – to insure against loss or money, stock or other assets resulting from staff dishonesty
• Data processing insurance  – covers electronic media and data processing equipment
• Glass and shutters insurance  – covers the replacement of glass or shutters following accidental or malicious damage
• Engineering insurance  – provides specialist cover for machinery or equipment
• Commercial legal insurance  – covers legal expenses that may result from non-compliance
• Credit insurance  – insures you against debtors who are unable to pay you due to bankruptcy
• Loss of cash insurance  – provides cover up to a set limit for the loss of money, either in transit or from your business premises

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