What can be included in a precision engineering business insurance policy?
Plant and Machinery Insurance. Owning or managing a precision engineering business, you’re likely to own expensive specialist plant and machinery, including production machinery. It may be that, from time to time, you also hire in specialist equipment. Appropriate cover should be arranged protecting both owned and hired in plant and machinery.
IT equipment and Associated Software Insurance. Critical to your business, you will need them insuring in case of damage, breakdown or theft. But you may also need to consider cyber cover to protect you from cyber fraud. It might be that you have significant intellectual property invested in software, or that you are concerned about security breaches or cyber extorsion threats. Cyber liability cover can protect you from a range of threats.
Professional Indemnity Insurance. You are likely to offer professional advice to clients in your line of work. Professional Indemnity Insurance (Sometimes referred to as Errors and Omissions cover) protects you when a client alleges that you have been negligent or made a mistake in your work.
Product Liability Insurance. Where you supply your own or third party equipment and install it, you may be held liable should that product prove defective.
Public Liability Insurance. If you work on client premises, or have clients visit yours, Public Liability, while not a legal requirement, is a good idea to have in place for most businesses. It protects you where a member of the public claims to have suffered injury or property damage as a consequence of your business activity.
Employer’s Liability Insurance. If you have any staff working for you – even casually or part time – it’s a legal requirement in the UK to have a minimum of £5m Employers Liability Insurance in place. It works in a similar way to Public Liability, but protects you in the event of a claim made by an employee.