Running a business today involves a certain amount of risk: many unforeseen events can occur that present challenges to the modern business owner. Accidents in the workplace, employee illness, mechanical failure of plant and equipment, even lawsuits from disgruntled clients: all of these may have to be dealt with at one time or another. Since the cost of dealing with any one of these could be enough to force closure of the business, it is essential that insurance is purchased that will adequately protect against any such events the business may face.

Industrial insurance (also known as commercial insurance or business insurance) is the collective name for the various types of insurance that pertain to business and industry. Depending on the laws of the countries in which the business operates, some of these types of insurance are likely to be compulsory, while some may only be optional. Whichever of these is the case, it is advisable to purchase as much insurance as can be reasonably afforded: though doing so may be expensive, it would be much more costly – in time and to the company’s reputation as well as in monetary terms – to have to deal with an accident or lawsuit while uninsured.

One type of insurance that is usually compulsory is public liability insurance It is a key part of the insurance protection needed by any business as it protects against claims made as a result of accidents and problems resulting from the company’s interaction with the public. Examples of this are, for instance, if material from a building site falls and damages a vehicle parked nearby or if a member of the public slips and falls during a visit to premises owned and operated by the company. Variations of this, professional indemnity insurance and product liability insurance protect those providing services to the public (for example lawyers and accountants) and protect against claims on faulty products supplied to the public respectively.

Another type of insurance that is compulsory in many countries is employers’ liability insurance which indemnifies a business against claims made by employees. Without such insurance a business would be vulnerable to claims resulting from accidents, alleged discrimination, constructive dismissal and a variety of other employee grievances. Though there can be exemptions to the compulsory need for this insurance (for instance government departments and family businesses where all employees are related to the owner), in general it is required for all businesses that are not sole traders.

Aside from compulsory insurance there are many other types of insurance that it is advisable for businesses to purchase. Common types include motor insurance health insurance and buildings insurance but there are some types that are specific to certain industries. Tradesmen’s Insurance Cover, for example, covers traders using tools and equipment in the course of their business, while print companies, couriers and construction firms are just a few of the types of company that have insurance tailored to them. All specialised businesses should research if there is insurance that suits their particular needs.

It can be seen that a sound knowledge of Industrial Insurance is essential for any business: no-one should find themselves without adequate cover due to ignorance. More information (including advice on finding the right type of insurance and on dealing with insurance brokers) can be found at http://www.industrialinsurance.co.uk – and various other sites. Each business should take the trouble to research this area, as not doing so could be very costly.