Protect Your Business With Indemnity Insurance
If you own a small business, its expected that youll do your best to make sure that your employees dont have to face illness or injury due to work
. Just in case they suffer from illness or face an accident, they can sue your business for the required compensation. This is when you may need Indemnity insurance to protect your business and get coverage against claims made by your employees.What Are The Types of Coverage?
Insurers offer two types of policies in order to protect businesses against claims made by others.
Public and employers' liability insurance: This policy offers coverage when you are required to pay compensation for an accident caused to your employee and your business is considered to be at fault. It also covers you for any claim made by your client, a member of the public or an independent contractor whos associated with your business. The best thing about this policy is that it covers you for the damages caused to your employee within as well as outside the workplace.
Employers liability policy pays for the legal and compensation costs and covers anyone offering voluntary help for your business. It covers claims up to 5 million for injuries caused by terrorism. Whereas, public liability policy helps you compensate the complainant in case he faces accidents or property damage. This policy usually covers up to 100,000 in legal fees required to defend a claim.
Professional Indemnity Insurance (PII): If your client makes a claim against errors and omissions with the work you have done for him, then you can protect your business with the help of PII. Such policies are available to business owners associated with a variety of industries. They are flexible so as to help you change your coverage any time in order to match the projects you are working on.
Is It Legally Required to Buy This Policy?
According to the law, business owners or employers need to have employers liability policy and they could be fined if they dont go for it. However, if you have a family business or you are closely related to your employee, you may not require purchasing the policy. If you are a public organization (such as a government department) or you have a business but no employees working under you, then you dont need to buy this policy.
How Does Indemnity Insurance Protect Your Business?
This policy protects you from potential risks associated with your business. It provides protection for different types of claims made by unsatisfied clients, who can otherwise affect your reputation. Sometimes, a small error on your part can create a dispute with your employees or clients who can then file a claim against you. Although you have business indemnity policy, you may have to defend your claim in the court of law. In case you dont win the case, the policy will still provide coverage for any damage caused by your business. This is how you can protect your business with indemnity insurance.
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