No matter whether you run a shop, a restaurant, or a bed and breakfast, your business needs insurance. These include injuries to customers or employees, damage to equipment, loss in earnings due to a variety reasons, theft, flooding and fire.
Imagine a pub owner who has a customer who throws their cigarette in the shrubbery. The smoke spreads from the pub to the bushes, setting them on fire. Fortunately, nobody was seriously hurt. However, you will need to close the pub until the damage is repaired. You will need to pay for the repairs and your business could lose its income.
Another example: Let’s say someone is hurt and sues you. This is covered by your pub insurance policy. Similar coverage would apply to retail or bed and breakfast insurance policies. These policies include a Business Interruption’ insurance policy that covers the above-mentioned loss of income, such as flooding or fire. It also covers sickness or death, and lack of public supplies.
Retail insurance is required to protect your business from potential losses or damage caused by customers. Like pub insurance, retail insurance covers you for business interruptions such as power failures or gas leakage. Your buildings and contents coverage will cover stock, machinery, and equipment related to your business. To protect yourself in the event that someone is injured on your property or an employee is hurt while working for you, you will need to have public liability and employer’s insurance.
What are the key elements to look for when choosing an insurance policy? There are a few things you need to keep in mind before you make a decision about which product you will purchase, regardless of whether it is pub insurance, retail insurance, or bed and breakfast insurance.
First, learn the differences between an agency and an insurance provider. Because they can do most of the heavy lifting for you, many businesses opt to have their insurance products purchased through an agent. Agents are often paid a commission so they may not offer the same savings as if you went directly to an insurance provider. As with an employee, the agent is being hired to work for you. Do you think it would be possible to hire someone without interviewing them? Most likely. Before you make a business deal with an insurance agent, here are some things to look out for.
Check out the length of time that the agent has been operating. You shouldn’t dismiss a newly-operating agent just because they aren’t as established. You should ask questions about their compensation, the companies they work for, and the carrier with which they do most business. You should also ask about their sway in difficult claims or coverage disputes. Knowing that your agent is there to assist you when you are most in need of it is crucial.
Ask different companies if they offer a special policy for your business. What if your agent makes a mistake with their insurance policy? Make sure they have ‘errors or omissions’ coverage. It’s not worth paying for their mistakes. Find out which trade divisions they are employed in and who their top clients are. A reference may be possible, but this is not always necessary. An agent should also be able give information, such as information on the financial rating of the company, market standing and reputation for payment.
Although having an agent may help you in your decision making process when buying pub insurance or bed and breakfast insurance, remember to do what you feel is the best option for your business. Specialized retail insurance may be required if you have a retail aspect to your business.
