| Frequently Asked Questions |
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| BUSINESS INSURANCE |
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| Q: | I want to start my own business. What insurance do I need? |
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| A: | Public Liability – You have a responsibility to make sure that no member of the Public injures themselves on your premises (slips, trips, falls over stock left on the ground – the types of claims we have seen is where a trolley is being rolled around and hits the ankles of a customer- or the trolley rolls off and hits a car or a person – We have seen people cut on boxes left on the ground – people slip on flower or vegetable leaves etc).
Also – the food or goods that you supply. If a customer falls ill or is injured then they will sue the shop owner. (We have had 2 claims of this type in recent times – One person was cut by a small piece of glass in Coleslaw they bought in a Sandwich. The second was also a piece of glass in a salad served in a local Pub. In both cases the injured party successfully sued the small business. Thankfully the Insurance Company looked after everything and the claim (and all legal costs) were paid in full.
Employers Liability – The shop/business owner has a responsibility to make sure that all staff are working in a safe environment and are not exposed to any dangers. The types of claims that are common are for staff having back injuries from lifting stock, boxes etc (the boxes or whatever, may not necessarily be individually too heavy, but staff may be lifting incorrectly without proper training (there is a law now that all staff must receive “Manual Handling” training). Other claims are for cuts, falls, repetitive strain, injury in a robbery, exposure to cleaning or other chemicals etc etc etc.....
Material Damage-Loss of the building or premises you work from, loss or damage to your stock, computers, money (some owners are renting a premises and have to fit the shop out at their own cost - ceilings, shelving, wiring, electrics , lighting, doors, shop front, Glass, Signs etc....
Fitting out, even rented premises can cost a considerable amount of money. It is possible (and not too expensive) to insure against the loss of all these things.
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| Q: | What is property insurance?
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| A: | Property insurance protects your buildings and equipment, stock, furniture and fixtures. Some policies include equipment breakdown and business income coverage. Basic property insurance will generally cover your business for losses in the event of a fire or lightning strike and will pay the cost of removing property to protect it from further loss. Additionally, a standard small business insurance policy will usually cover losses from windstorm, hail, explosion, riot and civil commotion and damage caused by aircraft, automobiles or vandalism.
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| Q: | How much property insurance does my small business need? |
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| A: | Property insurance can be purchased on the basis of the property's actual value (the replacement cost minus depreciation); its replacement value (the cost of replacing the item without deducting for depreciation); or an agreed-upon amount. |
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| Q: | How does liability insurance coverage protect my small business?
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| A: | There are many different types of third-party liabilities to be covered for a business. Business liability insurance may protect you from claims arising from someone's bodily or personal injuries. Other items that could be covered are damage to the property of others, products-completed operations, advertising, premises operations, fire, legal liability and related legal defense costs. For instance, liability insurance will not only pay the cost of covered damages but also the attorney fees and other costs associated with your defence.
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| Q: | What does "personal and advertising injury" mean in general liability insurance coverage?
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| A: | Personal and advertising injury means being responsible for libel, slander or any defamatory or disparaging material, or a publication or utterance in violation of an individual's right of privacy; wrongful entry or eviction, or other invasion of the right of private occupancy; false arrest, wrongful detention, false imprisonment, or malicious prosecution; which occurs during the policy period.
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| Q: | What is inland marine insurance? Why do I need it for my business?
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| A: | What is inland marine insurance? Why do I need it for my business?
Despite its misleading name, inland marine is a broad type of insurance which covers articles that may be transported from place to place as well as via bridges and tunnels. Specifically, this type of insurance protects a wide range of high risk, mobile items, including: specialized contractor's tools and equipment, electronic data processing systems, from mainframe computers to laptops, fine art objects and jewelry.
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| Q: | What is the difference between professional indemnity and public liability insurance? |
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| A: | Public liability insurance is an insurance policy designed to cover your business in the event that you cause bodily injury or death to a member of the public or damage to a third parties property.
A third party could claim that as a direct result of your negligence they have suffered a loss whether it is damage to their property or they have suffered a bodily injury. In the event that you are pursued by someone who feels that your business activities are a direct result of their loss they could sue you for compensation/damages.
If you do not have public liability insurance you ill be liable to pay the cost of the compensation awarded against you, this often runs into thousands of pounds. If you are unable to pay the compensation a court may pursue you for your home, you vehicles and any other assets that you have. If you have public liability insurance then the policy will pick up the cost of the claim minus the excess which is usually around €250 - €500.
Having public liability insurance will not prevent claims from happening, however it will pick up the cost of compensation to be paid out in the event that there is one.. |
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| Q: | Is public liability insurance compulsory by law? |
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| A: | Compulsory insurance means that you must have a minimum level of cover to operate legally. The greatest example of compulsory insurance is private motor insurance, the law says that in order for you to legally drive on the road you must have a minimum level of cover (typically third party only insurance).
Public liability insurance is not compulsory by law like employers liability insurance. It is however essential insurance cover for a business to have. In the event that you cause damage to another persons property or cause death or bodily injury you could be sued for compensation/damages. You will be liable to pay for the compensation awarded against you if you do not have public liability insurance. Public liability insurance claims are notorious for running into hundreds of thousands of pounds. If you are unable to pay the compensation which has been awarded against you a court may try and pursue you for any assets you have i.e. your home, your cars and any other assets which you may have.
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| Q: | Is public liability insurance and product liability insurance the same thing? |
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| A: | Product liability insurance will cover your business in the event that you provide a product to a third party which due to it being faulty or its poor design it causes damage to property, death or bodily injury.
Public liability insurance will cover your business in the event that due to your negligence (lack of care) a third party suffers a loss i.e. bodily injury or death and/or damage to property.
The difference between product liability and public liability insurance is that under a public liability insurance policy you will not be covered in the event that you provide a faulty product to a third party.
However product liability is usually thrown in with a public liability insurance policy. Under a public liability insurance policy you will typically be covered for €2 million which is an ample amount to sufficiently cover |
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| Please use the form on the Contact page if you wish to enquire about our services. |
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