The Top Business Insurance Tips for UK Marine Trades

Business Insurance in the UK marine trades? You’re probably wondering what type of insurance you need and if you’re going to be able to afford it or not, right?

The good news is that there are a variety of ways that you can obtain business insurance coverage from different providers.
In this guide on Business Insurance for UK Marine Trades, we’ll discuss your options, including the types of business insurance available and how much it will cost you (both monthly and annually). Let’s get started!

General Liability

Since general liability insurance covers physical damage to other people’s property, it’s a good idea to have it when you travel to clients’ places of business.

If you accidentally damage their property or injure an employee while on site, they may try to sue you.
General liability insurance will protect your assets from potential lawsuits and claims made by third parties. For more information, consult your local B2B insurer or agent.

In marine trading, it’s especially important to have general liability coverage. In case you accidentally break or damage a product while delivering it, your business may be liable.

Likewise, if a customer injures themselves because of a manufacturing defect in one of your products, they could sue you.

Professional liability

Your business will deal with lots of tools, machinery, and equipment. If someone is injured while they’re on your premises or because of your products, you may be held legally liable and face a hefty lawsuit.

Professional liability insurance protects you in these cases by offering protection against claims (such as property damage or bodily injury) arising from your products or services.

While it may seem expensive at first glance, professional liability coverage often pays out more than double its cost over five years.
It’s worth checking if you have it – there are a few different types depending on your business needs and should be considered part of an overall risk management strategy.

There are three types of professional liability insurance policies: errors and omissions liability, general liability, and contractor’s professional liability.

Each type protects you in different circumstances and can be purchased from one or multiple insurers.
To be sure you have enough coverage to protect your business from costly lawsuits, speak with an insurance agent or broker.
You can also use an online tool like EverQuote to get quotes from several top carriers at once.

Umbrella policy

If you’re self-employed, you should consider purchasing an umbrella policy. Umbrella policies are a type of additional liability insurance that helps protect your assets from excessive lawsuits in cases where large sums of money are at stake.

In addition to covering these costs, an umbrella policy can also help protect you from risks not typically covered by general liability policies.

These include things like defamation, libel, and slander, as well as errors and omissions. When deciding whether or not an umbrella policy is right for you, it’s important to consult with your agent—your current policy may already offer some coverage in these areas.

Property insurance

The value of all your stuff (home, car, etc.) is a key factor in deciding how much insurance you need. If you have $5 million worth of stuff and have only $1 million worth of coverage, that leaves you open to significant financial loss.

The flip side is true as well: If you have only $5 million worth of stuff but have $5 million in coverage, that’s also not ideal.
You don’t want to be underinsured—that can leave you short when an emergency strike—but over insurance isn’t helpful either.
You are probably paying for it regardless of what happens and if something doesn’t happen at all there’s no benefit to your having more insurance than necessary.

Keep in mind that there are different types of property insurance. Structural coverage covers damage to your property and its contents from disasters like floods or earthquakes.

This type of insurance typically comes with a deductible, which means you’ll pay an amount (say $1,000) before your insurer will begin paying out on claims.

You should also have liability coverage, which protects you if someone is injured on your property or sues you over a mishap or injury.

Auto/other vehicle insurance

You don’t need to rent a truck and start hauling lumber or bricks around to be a viable business.
Your car is one of your most important assets as an entrepreneur. For most, that means getting auto insurance is a necessity—and it’s always wise to compare shop between multiple providers when looking into rates and coverage options.

However, you may be surprised to learn that if you own other equipment (like a generator), you might need special insurance coverage for those items.
For example, if you owned a generator and rented it out for weddings, you’d need commercial property insurance to cover loss or damage from fire and theft.

Whether you own a car, truck, van, or another vehicle, it’s likely to be one of your biggest expenses as an entrepreneur.
And not only do you need to have auto insurance, but many states will require commercial coverage on any other vehicles that you own—even if they’re not being used in your business.

The amount of coverage offered and costs vary significantly between personal and commercial policies.

Equipment Breakdown coverage

If your company is in an industry that uses lots of equipment, you need to make sure it’s insured. You also want to make sure you have enough coverage so that if an important piece of equipment breaks down, you’ll be able to replace it quickly without going over budget.

While most business insurance policies provide coverage for replacement value—meaning a new machine costs just as much as a fully functioning one—not all do.

Make sure your policy covers damaged or broken equipment at its replacement cost, not at some percentage less than retail value.

Umbrella policy as a backup plan

Many new and small businesses often rely on personal insurance to protect their assets and families. For example, a person who owns a bakery may carry health, property, and car insurance.

If he or she suffers an injury that causes them to be unable to work, they can file a claim against their health insurance.

However, in many cases, people fail to realize that having insufficient coverage could lead them into serious debt in case of an emergency.
Buying an umbrella policy could potentially offset that liability so you won’t need to worry about going broke if your business encounters hard times or someone sues you for negligence or malpractice.

The main benefit of getting an umbrella policy is it expands your coverage far beyond what is typically included in a personal plan.

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