Different types of business insurance

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  • #1
    Hi all,

    Prior to developing my business idea I attended a fantastic business start up course. From this course I understood that for my type of business (offering facilitation, coaching and training) I would need professional indemnity insurance. I'm convinced I came across a post here yesterday referring to this and another type of insurance, public liability insurance. I don't want to take any chances, could someone advise me what types of insurance cover I need to take out? Essentially, I will be working from home but possibly going into places of work and perhaps even working from consulting rooms (latter not likely though).

    Dawn
    www.upturnconsultancy.com
     
    A

    Astaroth

    Free Member
    Aug 24, 2005
    3,985
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  • #3
    The normal ones would be:

    public liability (PL) will cover non-employees claims for injury/ physical damage caused by actions of you or your employees

    Professional Indemntiy (PI) cover you for claims from clients when they claim using your professional advice has caused them losses

    Employers liability (EL) legal requirement if you have employees, covers injury and property damage to your employees whilst working for you


    Motor - same as personal lines but covers commercial work such as carrying work equipment etc

    Property - same as home insurance (more or less) but may also include business interruption

    The reality is that there are thousands of different commercial lines insurance policies but 99% of the time they become bundled into convenient packages generally aimed at certain types of people (eg farmers, shop keepers etc) so fidelity insurance (covers you from your employees stealing things), business interruption, property, stock etc are often all rolled up into into a shop keepers policy.

    Best thing at the moment is to simply go to/ phone your broker and they will advise what you will need and what appropriate levels of cover are likely to be.
     
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    J

    julianiven1

  • #6
    I think that the professional indemnity insurance can be called something else, I saw something similar called directors and officiers insurance on the One Business website. I read through it and I think they would be the same, does anyone agree? obis-uk.com/business-insurance/directors-and-officers-liability-insurance
     
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    BakerSN1

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    Nov 4, 2008
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  • #7
    julianiven1 said:
    I think that the professional indemnity insurance can be called something else, I saw something similar called directors and officiers insurance on the One Business website. I read through it and I think they would be the same, does anyone agree? obis-uk.com/business-insurance/directors-and-officers-liability-insurance
    Click to expand...

    They are very different.

    Professional indemnity insurance provides cover for the insured party (be that an individual if self employeed or a company) against claims made against them for wrong/bad advice that cause financial loss to a customer/client.

    D&O cover provides protection for directors, officers and the like for "wrongfull acts", which include to name a few, breach of duty or trust, neglect or any act wrongfully committed. This is in respect of running the business more than problems arising from the services a business provides.
     
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    ShiningStar

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    May 18, 2009
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  • #8
    Hi there,

    I was in the same position and took out Professional Indemnity Insurance. It's a must! There are sorts of packages out there but I only took IP. You should shop around for the best deal. I found a few good quotes at a site called contructaquote.com. It worked out quite well for me. I'm not sure if you're still interested. Hope I helped!
     
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    ShiningStar

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    May 18, 2009
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  • #9
    Hi there,

    There are all sorts of business insurance which I think you need to consider. I think you should contact a top business insurance provider. Some provide a package covering different areas of business. I know that some even do a comparison service online which is really good if your looking for a reasonable deal? You should try this?
     
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    D

    decklinbrain

  • #10
    ShiningStar said:
    Hi there,

    There are all sorts of business insurance which I think you need to consider. I think you should contact a top business insurance provider. Some provide a package covering different areas of business. I know that some even do a comparison service online which is really good if your looking for a reasonable deal? You should try this?
    Click to expand...


    yes, what he said is true. The most common types of commercial insurance are property, liability and workers' compensation. In general, property insurance covers damages to your business property; liability insurance covers damages to third parties; and workers' compensation insurance covers on-the-job injuries to your employees. Depending on your business, you may want additional specialized coverages.
     
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    Simply Business

    Simply Business

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    Dec 1, 2009
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    London
  • #11
    The basics for your business are:
    - public liability insurance
    - professional indemnity insurance

    You can always add optional covers. Eventually most businesses take out a combination.

    Call your broker for a quote. A good broker will ask you additional questions for optional covers.
    And don't forget to compare online and "built" you quote.
     
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    K

    kandrinsurance

  • #14
    Sorry for the delay was waiting for my web people to update my site. Full fsa details below.

    K and R Insurance Brokers: Register Number 07596126 is an appointed representative of
    Ten Insurance Services Ltd which is authorised and regulated by the Financial Services Authority. No: 314593

    Our permitted business is arranging non-investment insurance contracts.
     
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    K

    kandrinsurance

  • #16
    I think the simple fact is if there is an element of doubt contact Ten Insurance Services LTD. I can give you their contact info and website if needed however I am sure you are more than capable of finding that information on a Google search. For me to be posing as an Insurance Broker under their network would be classed as fraud and in the UK fraud is illegal and is also a prison-able offence. I think this is a typical look at the Insurance industry in the UK which is unable or scared of new people or indeed ideas in the industry which represents change. The one way they stop new people or indeed change coming to the market is to rubbish the people entering the market hence keeping change away. No wonder the general public and ultimately the client feels disengaged with the Insurance Industry in the UK. The many potential clients I have spoken with find the Insurance Industry in the UK dull and boring and renewals are painful. I have worked with many insurance markets in the world as an underwriter and why is it that many other markets e.g. (Greece and America) find insurance buying important and enjoyable. Why is it that a ship owner in Greece will participate in the insurance buying for his company and enjoy the insurance renewal season but in the UK clients find it boring? This reflects on the culture that has been being impressed upon potential clients or indeed clients that insurance is mundane and boring. Why can’t we excite clients by getting them more involved and enjoying the yearly renewal? Why can’t we look at new ways of setting a policy up that save the client money? These may be slightly different in the approach but offer the same policy coverage at lower premiums however unfortunately with a bit more work for the broker? I will tell you why, most people have become too comfortable with the easy option. It’s the way it’s always been done so why change something that works. Well why not change something that works to something different with the same coverage for lower premiums. Our responsibility is to the client and finding the best suited insurance product that matches their needs with the right carrier with the right credit rating at the most cost effective price. Simple!!!!! I recently sat with a potential client in an initial meeting and I proposed to him a new way of looking at his policy. I quote his comments were “…in the 3 years I have been buying the insurance for my firm not one broker has told me we can place the business this way…”. Why is this? This is almost criminal. We should be advising all options and all possibilities open to the client not the one that suits the broker best as it is easiest. Therefore instead of trying to criticise new insurance brokers who are trying to enter the market, who, fundamentally are only trying to promote their name within the UK insurance industry. Why don’t we target the brokers and broking house that don’t advise their clients of all options open to them? This I think is a much greater concern to our industry than rubbishing or casting doubt on new people or indeed companies in the industry. We are not the regulator we are the advisors to our clients. Let the regulator regulate and the broker advise on Business. Let’s put some excitement back into the client. Let’s stop killing our industry by being grey and sheep. We can’t get any clearer than that really.
     
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    L

    lockyer

  • #18
    No one was critising you personally, stop being so defensive and breath.

    I think my learned friend theguru was merely pointing it out in case you had overlooked it.

    My noises were merely that you had joined the UKBF comunity and the first thing you have done is find insurance related posts, then dive in the threads promoting your business.

    Where as most other members try and join in the discussions in a more helpful manner, or even upgrade their membership which allows you to use the signature space for promotion.

    Welcome to the forum BTW.
     
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    K

    kandrinsurance

  • #19
    That was not meant to be pleasant or rose tinted it was the simple fact that people within the industry try to rubbish new people or businesses entering the market. It even happens when new underwriters enter the market all other underwriters moan about the extra capacity. It is a simple fact of the industry and I have seen it for the last 9 years people rubbishing new start ups. I would always find this funny how people have the time for this. If my analysis of the Insurance Industry within the UK was a bit brutal then I can do little but advise not to read my comments. I am speaking to people on a daily basis and although there is some positive feedback and good brokers out there in the whole it tends to be of lack lustre attitude and everyone doing the same thing. Lets engage the client and get them excited about an industry we love and enjoy. It can only help us the broker by making things more exciting. A happy client equals a happy broker.

     
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    K

    kandrinsurance

  • #20
    I had absolutely no problem with theguru and his comments. It was good of him to point out that this had not been included on my website as it is the most important piece of information that my website can contain. My comment was at your post "hmmmmmmm" and the doubt and uncertainty that can arise out of it which is unnecessary.

    Yes I am being defensive as it is something I have seen in the insurance industry for years and annoys me. Why can't we let people get on without negative comments and doubt spreading? Yes they may affect our business and clients may move to them but it is the clients choice. Yes I headed for the insurance post and mentioned my business. I mentioned earlier I was promoting my business as I have just started out. The natural route would be to search for insurance related articles. As I have more time I will look at commenting on more threads and posts as I am sure there is many conversations on this forum.
     
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    T

    TheGuru2010

  • #21
    I think you have the wrong end of the stick here & have upturned this in a silly way, at no stage was anyone rubbishing your name ???

    I was mearly stating that you had no FSA number on your site, I agree with some of your points made about the insurance industry.

    I personally dont ever think you will find a client happy that it is renewal time (they are paying money out) & have better things to concentrate time on.

    I agree that some insurers are lame & dont offer the service that could be offered (thats why ill always work for a broker).

    You speak of insuring things in a new approach? Can you elaborate some more?
     
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    K

    kandrinsurance

  • #22
    I am not saying anyone was rubbishing my name. Anything but! I am just saying it happens within the industry far too often and as I mentioned comments like "hmmmmm" do not help and if anything I thank you Guru for pointing the missing information out.

    I think you can get clients happy. Maybe not all of the admittedly. I think we have managed to get them too removed from the process. We say it is because they are paying money and they have better things to concentrate on so they don't enjoy it. This is true in a way but how do other markets find insurance buying enjoyable. Not everyone admittedly but some nationalities look forward to renewal seasons. This is down to the broker but more importantly they understand the cover for the price is amazing.

    I would agree some insurers are lame however like brokers there are some very good ones out there.

    A new approach to the business and in this I don't mean by using more technology. I mean a new way of placing the policy. Yes most domestic policies that are completed by click and compare website we can not change but why can't we think outside the box and come up with fresh new ideas to the standard way of thinking that happens currently. Why can't we give the client a new idea that he has never heard of.

    Right now we look at the way a policy is placed and think this is the way things have to be done as insurers tell us what they are willing to cover and how. Well let's turn it back on the insurers.

    This should be down to each individual broker to come up with new ideas to excite the client and in turn make the renewal process easier for everyone involved.
     
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    TheGuru2010

  • #23
    kandrinsurance said:
    I am not saying anyone was rubbishing my name. Anything but! I am just saying it happens within the industry far too often and as I mentioned comments like "hmmmmm" do not help and if anything I thank you Guru for pointing the missing information out.

    I think you can get clients happy. Maybe not all of the admittedly. I think we have managed to get them too removed from the process. We say it is because they are paying money and they have better things to concentrate on so they don't enjoy it. This is true in a way but how do other markets find insurance buying enjoyable. Not everyone admittedly but some nationalities look forward to renewal seasons. This is down to the broker but more importantly they understand the cover for the price is amazing.

    I would agree some insurers are lame however like brokers there are some very good ones out there.

    A new approach to the business and in this I don’t mean by using more technology. I mean a new way of placing the policy. Yes most domestic policies that are completed by click and compare website we can not change but why can’t we think outside the box and come up with fresh new ideas to the standard way of thinking that happens currently. Why can’t we give the client a new idea that he has never heard of.

    Right now we look at the way a policy is placed and think this is the way things have to be done as insurers tell us what they are willing to cover and how. Well let’s turn it back on the insurers.

    This should be down to each individual broker to come up with new ideas to excite the client and in turn make the renewal process easier for everyone involved.
    Click to expand...

    Im hearing what your saying but what exact part of things are you looking for proposed change on?

    Could you provide an example - I dont get 100% what you mean if i am honest, are you proposing a change on how the risk is looked at by the insurer? How there rating table works etc?
     
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    K

    kandrinsurance

  • #24
    I think each client is different but for example in the professional indemnity market the SRA stipulate a policy has to have a minimum coverage amount depending on the size of the practice. This is no problem but some firms buy upwards of £10m + in coverage up to £30m when legal minimums require less for example. Why can't brokers layer the policies here so place the minimum with an SRA approved carrier and the excess they place with a new market that writes the business at a much more competitive rate on line than a carrier approved by the SRA who are accepting the whole risk. These carriers only have so much capacity so why use the expensive one for the excess placement? They will always charge more as the market is limited for SRA approved underwriters. Why not look at options like this yes all may not work but some do and will work and could change the way of
     
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    K

    kandrinsurance

  • #25
    I think each client is different but for example in the professional indemnity market the SRA stipulate a policy has to have a minimum coverage amount depending on the size of the practice. This is no problem but some firms buy upwards of £10m + in coverage up to £30m when legal minimums require less for example. Why can't brokers layer the policies here so place the minimum with an SRA approved carrier and the excess they place with a new market that writes the business at a much more competitive rate on line than a carrier approved by the SRA who are accepting the whole risk. These carriers only have so much capacity so why use the expensive one for the excess placement? They will always charge more as the market is limited for SRA approved underwriters. Why not look at options like this yes all may not work but some do and will work and could change the way of a clients thinking when looking at insurance and their renewals. Small things like this can get a client engaged.
     
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    TheGuru2010

  • #26
    kandrinsurance said:
    I think each client is different but for example in the professional indemnity market the SRA stipulate a policy has to have a minimum coverage amount depending on the size of the practice. This is no problem but some firms buy upwards of £10m + in coverage up to £30m when legal minimums require less for example. Why can't brokers layer the policies here so place the minimum with an SRA approved carrier and the excess they place with a new market that writes the business at a much more competitive rate on line than a carrier approved by the SRA who are accepting the whole risk. These carriers only have so much capacity so why use the expensive one for the excess placement? They will always charge more as the market is limited for SRA approved underwriters. Why not look at options like this yes all may not work but some do and will work and could change the way of
    Click to expand...

    I am 100% agreed with you on that statement of truth be told, again i think you hit the nail on the head "some brokers/insurers just cant be bothered & want a easy life).

    You should always be in 100% strait talks with a client on what they want there policy to do, what are there key elements of the policy etc.

    I think you can place good insurance at a good price for a little extra work.

    A seperate rant here - I also think the business world could do with spending more time to understand there insurance & what each part covers. I constantly see new clients who say they have this this & this but have no idea what it acctually does or covers!
     
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    K

    kandrinsurance

  • #27
    Yes some brokers and insurers do just want an easy life and sometimes I think this is where and why the industry is perceived as dull. When the client feels the broker/insurer is bored with their placement it will have some affect on them and will undoubtedly make them think insurance is dull.

    You should always be 100% strait with your client and client talks. I fully agree with you on this. Maybe if we all tried to be a little more open and yes created some extra work in the placement of the policy if it so required we would start to engage the client more.

    Oh I fully agree again and I think you are agreeing with my original comment that some brokers/insurers are lazy. A good broker should sit down with you and explain all your conditions in the policy and how they work.
     
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    insurancebloke

  • #28
    Try the one of the best insurance providers out there - Hiscox - they do a Professional Indemnity package with Public Liability and Office contents (in your home or commercial office) for a variety of professions at good rates and they are top guys too and UK based. My own cover is with them (and my wife) - they are well respected by bigger professional brokers. Avoid like the plague any "supermarket" providers because you just won't get great advice (except perhaps on what hair gel to buy...)

    Professional Indemnity - for when the advice you give for a fee may result in injury or damage to the party receiving the advice.

    Public Liability - for when the actions you take on your own property or third party property may cause injury or damage to third party person or goods.

    Products Liability (usually in with Public Liability) - for when your goods or services cause harm to third party person or property (including any associated advice that is not given for a separate fee). If you sell product and give advice associated with the use of this product then that is 100% Products Liability. It would only need Professional Indemnity if you were paid a fee for the advice only and no product was attached.

    Hope this is helpfull - but beware some of the other advice out there on this forum! Some of it is (ahem) misguided.

    P.S. - I don't sell insurance products at all.
     
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    insurancebloke

  • #30
    People calling themselves "Guru", others clearly more interested in promoting their own self-styled "knowledge" and rants about Greek shipping magnates 'enjoying the renewal process' and doing something different in the renewal season......

    Maybe we should really stick to advising the person raising the initial enquiry and concentrate less on hijacking the post to demonstrate how clever we are - or not as the case may be.
     
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    TheGuru2010

  • #31
    insurancebloke said:
    People calling themselves "Guru", others clearly more interested in promoting their own self-styled "knowledge" and rants about Greek shipping magnates 'enjoying the renewal process' and doing something different in the renewal season......

    Maybe we should really stick to advising the person raising the initial enquiry and concentrate less on hijacking the post to demonstrate how clever we are - or not as the case may be.
    Click to expand...

    I would like you to explain how you have come up with this "how clever we are - or not as the case may be"

    My name has nothing to do with with me thinking im a "insurance guru" its simply a name i addopted in high school & have used online on other forums that I write upon.

    Should I assume you are having an off day?

    This is a old thread & there is no question to answer !
     
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    K

    kandrinsurance

  • #32
    insurancebloke said:
    People calling themselves "Guru", others clearly more interested in promoting their own self-styled "knowledge" and rants about Greek shipping magnates 'enjoying the renewal process' and doing something different in the renewal season......

    Maybe we should really stick to advising the person raising the initial enquiry and concentrate less on hijacking the post to demonstrate how clever we are - or not as the case may be.
    Click to expand...


    Well from my experience of dealing with Greek ship owners I can tell you that they do indeed enjoy the renewal process as they understand what they are buying. The owners will be the ones asking the broker about the possibility of a new way of placing a policy. Not like the UK where some brokers dont even tell clients of new possible solutions and follow the crowd witha bog standard placement.
     
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    Saxon Heights

    Free Member
    Aug 17, 2009
    70
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    Bristol
  • #33
    kandrinsurance said:
    I think each client is different but for example in the professional indemnity market the SRA stipulate a policy has to have a minimum coverage amount depending on the size of the practice. This is no problem but some firms buy upwards of £10m + in coverage up to £30m when legal minimums require less for example. Why can't brokers layer the policies here so place the minimum with an SRA approved carrier and the excess they place with a new market that writes the business at a much more competitive rate on line than a carrier approved by the SRA who are accepting the whole risk. These carriers only have so much capacity so why use the expensive one for the excess placement? They will always charge more as the market is limited for SRA approved underwriters. Why not look at options like this yes all may not work but some do and will work and could change the way of
    Click to expand...

    Solicitors can place their excess layers with insurers who are not on the SRA approved list. This means solicitors can buy say a primary £2m on the SRA wording (the most extensive in the market to my mind) and then £3m above that with an insurer not on their approved list (who may be offering a lesser wording), making a total of £5m cover.
     
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    Insurance Expert

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    Jun 10, 2011
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  • #34
    Hi Guys

    Just been reading all of the threads, its worth noting that it is important you choose a broker who has experience in the type and size of your business. Professional Indemnity insurance (PI) used to have minimum premiums around the £1,000 mark!!! For a small business or a new start up this is a lot of money. If you need help finding the right insurer let me know.

    PI was expensive because iit was intended or industries who provided advice for a fee (solicitors) or designed things (architects for instance). These businesses represent a true risk to the insurers. Whereas today PI is sold to a huge list of businesses and in truth many are low risk businesses therefore the premiums should reflect this.

    Remember, insurance is about trust and peace of mind, don't buy the very cheapest, the value is in the quality of the advice and the quality of the insurer when you are unfortunate enough to claim.
     
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