FAQ: About Commercial Insurance
Questions
- What types of Commercial Insurance are compulsory by law?
- What do the following terms mean?
- How can I make sure that my policy adequately covers my business and the appropriate assets?
- How do I adjust my insurance policy to reflect a new asset I just purchased?
Answers
What types of Commercial Insurance are compulsory?
There are three types of insurance which are required by law: motor insurance, employers’ liability and engineering insurance.
If you operate a commercial vehicle for your business it is your legal requirement to insure that vehicle. Everyone who drives the vehicle on the public road must, by law, have at least third party insurance cover for Class1 business use. This covers your liability for injuries to other people, their property, and their vehicles, caused by the use of your vehicle while it is on a public road. In reality most of us opt for “third party, fire & theft” policies, which cover third party risk, fire damage and the theft of our vehicle, or “fully comprehensive” policies which cover accidental damage to our own vehicle as well.
If you run a business you are legally required to have insurance to cover you if one of your employees is injured or ill as a result of working for you. The law also requires that you exhibit a certificate of employers’ liability insurance at each place of work. However, if all you are doing is employing a home help or cleaner you do not need this kind of insurance. For your peace of mind, it may be worth checking that your house contents policy covers you for any kind of accident they may have while working for you.
Public liability insurance is generally voluntary. However some businesses, eg horse riding establishments, are required by law to have public liability cover.
If you run a business that involves the use of certain types of power driven lifting equipment, in order that your insurance is not invalidated, you are required by law to have the equipment inspected at specified intervals.
There are no other legally required insurance policies but if you have a mortgage your lender will almost certainly require you to have house buildings insurance to cover your home and a life insurance policy to cover the mortgage in the event of your death.
Many small businesses do not regard business insurance as a necessity and as a result may fail to insure themselves. Neglecting to have relevant insurance or allowing insurance to lapse without renewing it is a criminal offence regardless of the size of the business.
If you’re a small business owners who doesn’t currently have business insurance or perhaps think you don’t have the correct type of insurance read Commercial Plan Insurance’s FAQs for advice and call Commercial Plan Insurance on 0800 542 2742 for a competitive quote.
What do the following terms mean?
Glossary of common terms;
Asset
An item of economic value owned by you or your company.
Claim
A notification to the insurer that a covered peril has occurred and compensation for loss or damage is required.
Claims history
Your history of insurance claims.
Excess
The first part of every claim that you have to pay.
Insurer/Insurance Provider
The Company that provides the cover and will pay you for any claims.
Insurance Broker
An insurance professional able to provide independent advice on a wide rang of insurance matters.
Liability cover
Can include employers, personal and product liability. Refers to your legal liability to pay the compensation and costs awarded against you in respect of loss or damage sustained by a third party.
Loss Adjuster
An expert in processing claims from start to finish. A loss adjuster will be appointed by the Insurance company to negotiate a settlement, within the terms of the policy, which is fair to both you and the insurance company.
Premium
The amount you pay to receive cover under the terms of your policy.
Inception Date
The date on a policy for which cover begins. Any claims made before this date will not be honoured.
How can I make sure that my policy adequately covers my business and the appropriate assets?
One way to make sure you protect all your assets is to create a list of any business assets you would want to cover and check your policy for their inclusion. Make sure you have included cover for all your tools, fixtures and fittings, equipment, stock and any other important items.
If you are in any doubt Commercial Plan Insurance’s expert staff can advise you on suitable levels of cover, simply call 0800 542 2742
How do I adjust my insurance policy to reflect a new asset I just purchased?
When you purchase a business asset, you should contact Commercial Plan Insurance and we will determine how you can include it in your current cover. Coomercial Plan should be able to cover the extra item immediately. New documents will be issued as soon as possible and the extra cover will then be included as part of your policy when you come to renewal.
If you have purchased a new business asset call Commercial Plan Insurance on 0800 542 2742 and our expert staff will be able to assist you.
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