It’s always important for businesses to be protected by insurance. Failure to do so can result in severe financial problems for small and large businesses alike.

There are three main types of insurance that are designed to protect businesses. These are public liability insurance, employers’ liability insurance, and professional indemnity insurance.

Personal injury solicitors will often operate on a no win no fee basis, when offering to represent people who are injured at work or on business premises. Personal injury law is also designed to make sure that businesses are aware of their obligations to the public and employees.

Public Liability Insurance

Public liability insurance is a type of insurance that is essential for any business that either puts on public events, or operates a business that attracts many people, such as pubs and clubs. Businesses that can be considered a high risk to the general public, if an accident takes place, also need to take out a public liability insurance policy.

Because accidents can happen anywhere at any time, even a business that is considered a small risk, and which only has a small office, should still consider taking out a public liability insurance policy. In these harsh economic times, some small businesses may be tempted to skip paying for insurance, but this could prove to be short sighted when an accident does occur.

Employers’ Liability Insurance

Employers’ liability insurance is required by all businesses under British law. All employers have to have this type of insurance in place, and it is designed to offer protection for employees from both injury and illness.

Professional Indemnity Insurance

Professional indemnity insurance is more involved, and covers a business in cases of negligence or unintentional damage and human error. Negligence cases could involve important data being entrusted from one business to another and that data then being lost or damaged beyond repair. What constitutes unintentional damage includes libel and slander, but also a breach of confidence that results in a negative impact on a business. Also covered by professional indemnity insurance is when the intellectual property rights of another company have been infringed upon, even when done so unintentionally.

As well as businesses, professional indemnity insurance also covers accountants. Consequently, it’s important for every business to only employ an accountant who is covered by this type of insurance. Then, in the event that the accountant makes errors, the business will be compensated.