Business Insurance – Get It Right or Risk Everything

There is a good chance that you are going to do your best to ensure that your business runs smoothly. You will need to make decisions about everything, from hiring the right staff to choosing the best service providers.

There are many things that can go wrong when running a business, or life in general. It is up to you as the business owner to make sure that your business doesn’t get too affected by the unexpected.

This is why commercial insurance is important for your business.

These are just some examples of what can happen to businesses if they don’t have insurance or the wrong type of insurance.

Landlord Construction Insurance Claim

You are a property owner who owns a portfolio that includes flats, apartments, houses, and commercial properties. Your chances of anything happening in your new block are very remote. They are empty at the moment so you decided not to insure them.

Your newly decorated flats will be broken into over the weekend. The brand new kitchen and bathroom suites will also be ripped out and taken.

What now?

  1. You basically pay everything if you don’t have insurance
  2. You may have saved money if you had actually managed to get the flats covered but excluded theft coverage (even though there were no tenants or furniture). It is possible that the damage you caused by theft will be covered.
  3. You can rely on your landlord building insurance to cover the repairs and replacements. If your broker has the right level of insurance, you can ring them to arrange for the repairs and replacements.

For a small landlord insurance premium, you might end up paying hundreds to thousands of pounds. It’s not worth it, right?

You might be thinking that you would make sure your portfolio includes all of the properties. But what if you only have one property and your budget is tight? You could end up with no insurance at all or inadequate coverage. It happens all the time, for both individuals and businesses. Insurance is often the first thing that is sacrificed when money is tight.

You might have forgotten to renew your business or commercial property insurance. There are many other things you should consider.

Another example of a claim you could face is this:

Commercial Property Insurance Claim

If you own a small business, you will need commercial property insurance to protect your factory. Employers liability insurance is required by law so make sure you have it in place. But what about the factory? All the staff are experienced and have an alarm. People know what to do (and what not to do). You have the following scenarios when there is an overnight fire:

  1. Without insurance, your business could be destroyed. You have to start over.
  2. So, you have just renewed your commercial combination insurance policy. Well done. You chose to have a large excess (or deductable), and not business interruption insurance, in order to lower your premium. This leaves you in a difficult position if your business is not able to recover.
  3. Your insurance broker gave you advice. They discussed what coverage you need and made sure that your excess was reasonable and affordable. They ensure that you receive an interim payment and that your business does not cease to exist – even if it is a small excess and premium.

Insurance is something that most people don’t like, but it is essential for business owners, managers and anyone responsible for ensuring the company’s protection. You can be sure that your business will be protected in the event of a loss by getting the right business insurance. You and your company could be left without the right insurance coverage or commercial insurance. Is it worth taking the chance?