How much insurance cover to take out? It’s a question that perplexes a lot of people. First, you need to consider which policies to take out and then how much cover each one needs to provide.

Statutory obligations

First and foremost as an employer you’ll need to have employer’s liability cover in place; it’s the law. The more people you employ, the higher the cover you’ll need, but typically this insurance is taken out for a minimum of £5 million.

Contractual requirements

In addition to your legal requirements, you’ll also need to consider any insurance requirements specified by your existing clients’ contracts or those outlined in any tenders to which you’re planning to respond.buffer, guard, indemnity, insurance, padlock, padlocks, precaution, prevent, preventive, protect, protected, protecting, protection, safeguard, safeguards, safety, secure, security, unlock, unlocked, unprotected, unsafe, 3d, royalty free,

Tender specifications

Many invitations to tender specify a certain amount of public liability insurance a business must have, even to be considered for a contract. So, it would be in your best interests to take out substantial public liability insurance, if you want to see your business grow over the coming months.

Your public liability insurance

Most public liability insurance policies offer cover of no less than £1 million, though £5 million or £10 million are common amounts to take out. Take a look at the Government’s contract finder website to find suitable opportunities for your company and to find out more about the indemnity and insurance requirements specified in such contracts.

Public liability insurance is not a legal requirement for most businesses (though there are exceptions). However, it’s something customers like to see; trade organisations often require this cover, and it’s highly advisable to take it out if you want to see your business grow.agreement, banking, boss, business, buying, concepts, contract, correspondence, deal, document, entrepeneur, expertise, final, finance, financial, finger, form, hand, holding, insurance, insure, legal, letter, manager, money, occupation, office, official, pact, paper, paperwork, partnership, pen, personal, professional, report, sales, sign, signature, signing, statement, success, successful, text, trust, words, working, writing, royalty free,

Your professional indemnity insurance

In addition, professional indemnity insurance is a requirement for some professions. If you’re a solicitor, for example, you must have a minimum of £2 million or £3 million worth of cover depending on whether you are a sole practitioner or part of a partnership. However, professional indemnity insurance is advisable for many other businesses, especially if your clients rely on your expertise for their business success.

The right amount of cover?

In taking out the right amount of cover, you need to consider your business, your customers and your own needs. Look at the strengths and weaknesses of your business and where you are potentially most vulnerable.

What are the risks inherent in your line of business and what loss or damage could they potentially cause to someone? For example, if your business manufactures, distributes or sells a product, would product liability insurance be appropriate, to cover you in the event of a fault, failure or accident?Do you have business premises or vehicles that require cover?

In addition to cover that encompasses your business interests, you should also give a thought to your personal insurance cover – especially if you have dependent’s. So you may want to take out income protection, critical illness or life insurance cover that will ensure your financial responsibilities are met.

Your insurance cover

We’ve given you a broad overview of the type and amount of insurance cover to consider taking out. But every policy, provider, person and business is different; you’ll want to evaluate your options carefully and to look at the specifics of each policy.

Your insurance broker

If you’re not sure what level of cover you need to protect yourself and your business, then speak to an experienced insurance broker. They’ll have an understanding of a wide range of businesses and understand the varying risks inherent in different sectors. So whatever the size or type of business you run, they’ll find you the right type and amount of cover. Want to find the right insurance cover for your business? Then contact Call Wiser, they’ll find appropriate insurance for you.