Businesses that operate in a hazardous environment and involve life-threatening risks in their day-to-day operations are classified as high risk businesses. Here is a non-exhaustive list of industries that are typically classified as high risk:
If your business involves working in remote regions, dangerous occupations or challenging environments, it’s likely to belong in the high-risk category.
It is highly recommended to seek insurance cover suited to your specific operational needs to help bear any expenses you may incur due to unforeseen events. The features that can be added to form the basis of a comprehensive package for high risk business insurance are as follows:
Employers' liability insurance: This form of insurance is a legal requirement if you have employees involved in the running of your business. People working in high risk industries perform dangerous activities as part of their daily work routine. In the event of injury to an employee while carrying out their duties, this form of insurance can help to cover the costs you may incur in paying compensation and handling legal costs. Your employers' liability insurance cost will differ depending on the industry you work in and the day-to-day tasks being carried out by your employees.
Business equipment insurance: Specialised equipment and tools may form a core part of your business, and an instance of breakdown has the potential to halt work and also incur heavy repair costs. Business equipment insurance can help to bear the expenses incurred on returning the machinery to working condition, ensuring that you are not financially affected due to such circumstances.
Professional indemnity insurance: There may be occasions where a customer alleges that you have provided inadequate service or incorrect advice resulting in financial loss to them. This may lead to legal costs, defence expenses and also compensation pay-outs. Professional indemnity insurance can help to cover these costs and other expenses that may arise due to complaints of professional negligence resulting in loss to clients. For more information, including the factors that can cause your professional indemnity insurance cost to rise, click the link.
Public liability insurance: Although not a legal requirement, public liability insurance is a necessary precaution if your business involves contact with the public or any third party who is not an employee of your business. If your business is high-risk, so it’s worth enquiring about public liability cover as part of your package insurance policy. Remember, the more risk your business poses to your customers, the more likely it is to increase how much your public liability insurance will cost.
If you would like to know more, visit our what is public liability insurance page.