Insuring certain aspects of your business is essential. Businesses usually purchase many types of insurance to protect themselves from risks. Before starting up a new business, you must ascertain which business insurance cover is required. Increasingly insurance providers offer a flexible approach to this process, recognising that all businesses are different. Part of a worldwide brand with nearly 100 years of experience in niche markets, Markel (UK) Limited is a leading specialist insurer providing insurance for a variety of professional, management, social welfare, charitable and specialty property/liability risks for organisations of all sizes, http://www.markeluk.com.

Choosing the right insurance for your business can be tricky, so here’s a guide to the different types:

Professional Indemnity

Compulsory for most professional businesses and services. It protects your business against third party claims of negligence or a mistake of your business, committed in the course of their professional duties, resulting in their loss or damage. It also covers legal costs. The types of businesses that often take out PI include accountants, IT consultants, journalists, architects, financial advisors and engineers.

Employer’s Liability

Employers are responsible for the health and safety of their employees while they are work. Most employers are required by the law to insure against liability for injury or disease to their employees arising out of their employment. Your employees might try to claim compensation from you if they think you are responsible, so it is important for you to cover yourself against this risk. Employees injured due to an employer’s negligence can seek compensation even if the business goes into liquidation or receivership. Employer’s Liability, arising from The Employers’ Liability (Compulsory Insurance) Act 1969, ensures that your business has at least a minimum level of insurance cover against any such claims.

Public Liability

Covers you for claims made against you by members of the public or other businesses, but not for claims by employees. PL should be considered if members of the public, clients or customers visit your premises. It will protect you in the event that a mistake is made which causes an injury to a member of the public or customer, or which damages their property. The cover should include any legal fees and expenses which result from any claim by a third party.

Insurance can be purchased online, either as part of a full business insurance policy or as a stand-alone policy. Visit http://smallbusiness.com/wiki/Insurance for more guidance on insurance and be sure to use an authorised insurer. You can check if a company is authorised by searching the register on www.fsa.gov.uk or by telephoning the Financial Services Authority on 0845 606 1234.