It is an insurance not required by law but it can provide additional protection for you and your property or business. There are several non-compulsory types of insurance that can be considered. Public liability covers you against accidents and injuries to, or the death of, members of the public or damage to property that occurs as a result of your business activities. It also covers any related legal costs. Property insurance can be provided for specific risks (eg fire or flood). Cover against theft by outsiders is advisable for retail businesses. Business interruption insurance compensates you for extra costs if your business suffers serious disruption after, say, a fire. This is also known as ‘consequential loss’ insurance. For example, a manufacturer might have to stop trading for six months while premises were rebuilt and re-equipped or alternative premises are found. Legal expenses insurance covers legal costs such as solicitors’ fees and court costs. Income protection insurance schemes can be used to cover employees in the event of long-term sickness, paying their salaries during the period of incapacity. Other more specialised insurance policies are available to provide cover for particular business situations. Money policies cover you for loss of cash or cheques. Glass insurance may be necessary for shop windows or any other fixed glass. Credit insurance can compensate for debtors who are unable to pay you. Travel insurance is strongly advisable especially for overseas travel. Computer policies may cover you for breakdowns and for loss of information. Private health policies may cover the costs of private medical treatment or pay in the event of a ‘critical illness’.
