I don’t think I have ever met anyone who doesn’t like paying for business insurance. While many businesses believe it is necessary, most people would prefer not to have it.
It is not a popular topic, but it is important to understand the reasons it is necessary, the different types of policies you should consider, and how it might be possible to reduce your risk of high premiums.
Business insurance protects your business from the loss of its assets due to theft, damage or negligence. You may also be protected against any claims by members of the general public for advice or services they provide.
The amount you pay depends on the size and likelihood of claims.
If you’re looking for your first policy of business insurance or are reviewing your current policies, take some time to review the following guide.
Many businesses have some type of premises. You should insure these premises against a variety of risks. These include water damage, riots and malicious damage as well as fire accidental damage to storms or cars/lorry collisions. It is important that you carefully read the policy details as some policies may not provide coverage for Force Majeure.
Some policies include all-risk insurance. Without naming all the risks, it would also consider what isn’t covered.
Similar to residential insurance, it is important for your insurer to know if you have been unable or unwilling to occupy the building.
You might also consider separate insurance for stock and machinery as well as contents.
Many business owners opt for indemnity insurance, which deducts any wear and tear from the settlement of a claim. If the premises have been entered or evacuated violently or forcibly, contents are covered against theft.
You must take the necessary precautions to protect your contents. If you are deemed high risk, insurance companies may require expensive security equipment. Due to multiple break-ins, I know of many businesses that have had security smokescreens installed by insurance companies.
It is not unusual to have Business Interruption policies to protect against losses of profit from damaged equipment.
Your employees must have insurance on any car, van, or lorry they use. It is important to ensure that the vehicles are properly insured and covered for business use. You should take the time to check whether your employees are covered for occasional or regular use as well as whether they have coverage for stock, samples, products, etc.
Businesses with a lot of sales personnel can also get fleet car coverage.
It is important to inform the insurer whether your employees hold a clean license. This will affect the cost of your insurance.
The number of home-based businesses has steadily increased over the years. Technology is improving so the possibilities are likely to grow. Normal residential homeowner insurance won’t cover issues affecting your business. In fact, it may be possible to invalidate your current policy.
While some insurance policies can be sold directly by the insurance companies, most policies and advice are offered by business insurance brokers. This is especially helpful if your business is complex and you need multiple policies.
It is important to shop around when shopping for business insurance policies. It is crucial to compare quotes in terms both of price and level of coverage. Although it might seem tedious and boring, this is essential.
You must immediately report any loss or damage to your assets to your insurance provider. If you suspect that the loss or damage was caused by a criminal act you should immediately inform the police. Make sure to keep as many details about what happened as you can.
In order to support your claim, your insurer might request you to provide documentation. You are required to keep certain documents for a specified period of time by law.
In the event that you are sued, you want your business to be back in full operation as quickly as possible. It is important to have accurate documentation of invoices, receipts, stock levels, and equipment inventory.
Insurance is all about the risk. Your premiums will be determined by your risk. This could be in the form of financial value or claim likelihood.
Reduced risk may reduce business insurance premiums. This is why many businesses conduct regular Health & Safety audits. Clear, well-documented procedures can reduce the risk to employees and members of the general public. This may also help you lower your premiums.
