Consideration When Insuring Your Business

When running a business you will want to ensure that you have considered all possibilities of protection and insurance policies available. If you have your own premises, like insuring your own home, you should have buildings insurance. If you rent your premises your landlord should provide the buildings cover. You will also need to ensure that you have covered the contents of your business.

Depending on the type of your business, you may need your contents insurance to cover items such as stock, machinery and all other contents including office, furniture and other equipment which would not be covered under your buildings insurance. When buying contents insurance you will have a choice of either replacement as new insurance or indemnity insurance. Most business owners choose indemnity cover. This cover deducts the cost of any wear and tear when settling a claim. Contents are usually only insured for theft as long as there has been a forcible and violent entry or exit, so would not cover any theft if one of your employees or ex-employees still had key access. Some content insurance policies will have an upper limit for the amount of cash insured on site and again depending on your type of business, you may need to look at buying a specialist insurance policy to cover greater amounts of cash.

Specialist insurance policies will offer different business different levels of cover to suit their needs. As we briefly mentioned, if you deal with larger amounts of cash, you will need to ensure that you purchase a loss of cash insurance which will cover an agreed limit for the loss of money and will also cover the money if it is in transit to and from the business premises as well as on site. There is also a fidelity guarantee insurance which covers you as a result of loss of money or stock from any staff dishonesty. You can also purchase goods in transit insurance which will cover the cost of any goods which are damaged while being moved. There is also commercial legal insurance which would cover legal expenses in certain circumstances or credit insurance which can insure you against your debtors if they are unable to pay or go bankrupt. You may need to consider specialist insurance for machinery called an engineering insurance or tradesman’s tools insurance to cover their tools. You could insure any of the glass against any accidental damage. There is also professional indemnity insurance which is an insurance policy to cover you against any compensation claims against if you have been negligent. There is also a business interruption policy which will insure your business against any loss of profit or higher overheads resulting for example from damaged machinery.

There are also specific insurance policies for covering directors and key personnel as well as all employees for travel, life and health insurances as well as specific and specialist motor insurance policies to cover your vehicles or employees’ vehicles for business use.

If you work from home, you will need to ensure that you have adequate business cover available. Standard household insurance policies will not cover for any business use.

So depending on the type of your business there is many different insurance policies available to ensure that you cover and insure your business adequately. It is best to discuss all your requirements with specialist business insurance policies to ensure that you get insurance policies tailored to your needs and you are covered as you expected. It is always beneficial when seeking business insurance that you get a couple of quotes from different insurers. As well as cost you may want to consider their level of service, especially if you have to make a claim, no claims bonus, 24 hour legal advice and emergency help lines and the excess levels (the amount you will have to pay towards each claim).

There are also various policies on liability insurance, insurance policies to protect you if an incident arises and you or your business can be held legally responsible for it including the compulsory employers’ liability insurance.

As we know insurance can be expensive although essential compared to the cost and risk of having no insurance, but you can reduce your company’s risk which can help reduce the insurance premiums by having adequate risk and safety audits on your business and its premises as well as health and safety hazards and regular servicing of your machinery.

By discussing your requirements fully with a broker or specialist business insurance company you can find out and insure your business fully giving it added protection.