Mid Net Worth Home Insurance A Guide to Insurance for Limited Companies


Given the risks that may befall limited companies, it is of no surprise that there is a huge amount of insurance products available to protect you against pretty much any risk you may be subject to. This guide seeks to help you understand what products may be prudent for your business to have.

Let’s start with the most common products that you will likely need for your business, whether legally or practically.

Employers Liability Insurance

This insurance is required by law, and pays out if your staff are injured at work. Even if you only employ temps or seasonal workers you must prove that you have this type of insurance.

There are a couple of exemptions;

  • Companies who only employ close family members
  • If you are self employed and you own half or more of the share capital

See more here.

Public Liability Insurance

Public liability insurance pays out if any claims are made against you from members of the public. It also covers you for legal representation in the event it is needed.

Examples where Public Liability Insurance would cover you include:

  • You leave out some equipment/stock and a customer or passer-by trips over it, then suing you for damages.
  • A job you do for a customer fails and damages the customers property (e.g a pipe you fitted was not secured properly and leaks)
  • A customer burns themselves on a poorly guarded heater.

See more here.

Professional Indemnity Insurance

PI insurance will protect you in case any advice, services or designs you have provided are found to be inadequate. Regardless of your and your teams experience, the possibility remains that mistakes could be made. PI exists to protect you against any claims for damage by professional negligence.

Many companies, particularly the larger firms will require you to have PI insurance in place before they will hire you.

See more here.

Commercial Combined Insurance

Commercial Combined Insurance is a comprehensive policy encompassing many of the different policies most commonly required. It is the most popular policy as they can be tailored to cover risks exclusive to your business. This kind of cover is primarily designed for smaller businesses and is much simpler as you only have one policy to manage.

This may also be one of the policies that meets regulatory or contractual obligations, securing you more contracts – as well as bolstering your reputation as a solid business.

Features of Commercial Combined Insurance include:

  • Employers Liability
  • Public liability
  • Business Interuption
  • Product Liability (injury or damage caused by a product you sell)
  • Legal Expenses
  • Cover against material damage and theft
  • Goods in Transit Cover
  • Money cover
  • Engineering inspections cover
  • Personal accident and/or sickness risks

See more here.

Cyber Insurance

Even though you may try your hardest to protect your business against online attacks, it is easy to miss out details and leave your business exposed.

This is proven by the 875,000 small businesses that were affected by cyber breaches in 2017. Cyber insurance is becoming an increasingly common (and needed!) choice for businesses. There are so many pitfalls you could fall under when storing any kind of customer or employee information online – and the fines for not protecting data properly are vast. GDPR as well as new fines of up to £17m for firms who are found to be lax with their cyber security are all potential risks to your business.

It is obviously up to you how you decide to protect your business, but cyber insurance is likely a prudent measure given the rise in the level of cyber crime recorded.

See more here.

Fleet Insurance

This works by allowing you to insure 2 or more vehicles on a single policy – giving you the administrative advantage of having all your businesses insured in one go. Additionally, fleet policies may work out cheaper than insuring a number of vehicles individually.

In addition, you can arrange the cover so that specifically named employees have cover on multiple vehicles. This has the advantage of making things logistically easier to run.

The biggest difference with a Fleet Policy compared to a standard motor policy is in how your fleet is rated by the insurer. Instead of rating on each vehicle and earning no claims discount, the insurer will rate on the claims experience of your business. There is usually an excess on each claim.

Features of Fleet Insurance include:

  • Breakdown assistance
  • New vehicle replacement within 12 months of 1st registration
  • Courtesy vehicle
  • Legal protection
  • Windscreen cover on all comprehensive policies
  • Mirrored no claims bonus from private car insurance policies
  • Travel to the EU
  • Cover for radios and stereo equipment

Whether you run a taxi business, have a number of sales representatives in cars – even if you’re a large family running two or more cars – fleet Insurance might be a good way to go, offering minimal administration and great value and flexibility.

See more here.

Office Insurance

An office insurance policy can be tailored to your exact needs. Typically, it can include:

Public Liability, Employers Liability and Product Liability Insurance – Protecting your business against negligence claims arising from staff, the public or as a result of an allegedly faulty product.

Buildings Cover – Protecting the physical building itself against accidental damage, for example.

Computer Breakdown – These days, it’s just about inconceivable that an office wouldn’t have a computer. Computer equipment breakdown can be covered, ensuring your ability to continue to trade.

Business Interruption – If something goes wrong – for example, computers going down – that affects your ability to trade, or means you have no choice but to send employees home, business interruption cover can step in. Up to £500,000 of loss of income can be covered as a result of insured perils. Loss of income due to either a supplier becoming unavailable or due to something happening in your office that immediately prevents you from trading can also be covered.

See more here.

Shop Insurance

Getting the right cover in place is vital for any business. Shop Insurance is quite complex as it usually requires cover for a variety of risks. Typically a Shop Insurance policy will cover:

Public Liability – Because you come into contact with suppliers and customers visiting you at your premises, Public Liability cover is a priority.

Employers Liability – If you employ people in your shop this cover is a legal requirement to protect your business from the costs of claims for work-related injuries or illnesses.

Contents – covers all the contents and stock in your shop for costs associated with their theft, loss or damage.

Buildings – covers the physical structure of your shop as well as its fixtures, fittings and improvements against accidental loss, destruction or damage.

Loss of money – covers your cash in the event that it’s lost or stolen from your shop, your home or when it’s being taken to the bank.

Goods in transit – if your shops goods are lost or damaged while in transit this will cover you.

Business interruption – If there is an accident at your shop and it stops you trading then this cover will pay for loss of profit and ongoing costs including staff wages.

Loss of license – if through no fault of your own you lose your license to sell alcohol a shop insurance policy will cover the cost of lost sales.

Business equipment – provides cover for the theft, loss or damage to portable business equipment that you use in or outside from your shop.

Legal expenses – if you become involved in any legal proceedings then this will help cover your legal costs.

Terrorism – provides cover in the event that a terrorist act results in damage to your shop or loss of life.

See more here.

If you have a specific business insurance enquiry and want efficient, friendly advice and quotations, simply call us on 01246 575 625 or use our enquiry form.