Many consider insurance an expense that they cannot afford and although insurance can be expensive it should be countered into every budget as the cost of not having insurance can be far more substantial.
In the case of a business having insurance the policy will most often protect business from closing due to a catastrophic loss. This loss could incur from a multitude of reasons, fires, floods, natural disasters, this has been the end of many businesses during modern times. If there is an insurance policy in place this will not prevent any loss but it will soften the blow as the business will temporarily be closed rather than permanently, not to mention the personal financial damage business owners would avoid. Insurance is the best defensive measure for financial stability.
If you have any further questions about insurance and any policies that you may be interested in, do not hesitate to call a member of our team that will give you honest advice on what policy suits your needs.
Why insure my business?
Businesses are required to have certain policies in place by law, third-party insurance is usually the minimum insurance that is mandatory by law.
Insurance can protect you from all kinds of risks that some with having a business, having insurance in place will protect you from risks and events that occur outside of your control such as burglary, public damage and weather damage.
Continuity. Having the peace of mind that your business will be back to normal as soon as possible after an incident or accident that could effect business if insurance wasn’t in place. For example: Your shop is burgled and safety deposit box stolen, you have an alarm system and secure locks in place but the criminals still gain access to your business premises. You have a stock cover policy in place as well as damage cover and you are able to claim back money for both stock lost and any costs in replacing the locks, deposit box and damages made. Whilst there is still a disruption to business it is significantly less that without a policy, this kind of damage could potentially send a business into bankruptcy.
What basic business insurance cover do I need?
This depends on what your business does. Here are some of the main types of insurances:
Employers' Liability Compulsory Insurance (ELCI) – if you have staff, this protects your business if your employees make a claim against you for accident or injury.
Motor insurance – if your business uses motor vehicles, you will need at least third-party insurance.
Public liability – if you visit customers’ premises this will cover you for accidental damage to their property. It also covers visiting customers, if they’re injured on your premises.
What is Public Liability Insurance?
Public Liability Insurance covers your legal liability for physical injury, damage or loss caused to third parties arising from your business activities – set at a level that that matches your liability.
This insurance policy is designed to protect your business in the event that a member of the public is injured, or if their property is damaged, either while they are at your business premises or while you are in their home or workplace.
Even a simple, non-serious accident - such as a customer tripping over a trailing cable in your shop and breaking their ankle - could lead to financial claims big enough to bankrupt you and your business.
How do I protect my business in the event of a disaster?
If a natural disaster or extreme weather puts your business out of action for days--or months--your property insurance has got it covered. But while property insurance pays for the cost of repairs or rebuilding, who pays for all the income you're losing while your business is unable to function? For that, you'll need business interruption coverage. Many entrepreneurs neglect to consider this important type of coverage, which can provide enough to meet your overhead and other expenses during the time your business is out of commission. Premiums for these policies are based on your company's income.
What is an umbrella policy?
In addition to the four basic kinds of worker's compensation; general liability, auto insurance and property/casualty coverage, it is recommend an additional layer of protection called an umbrella policy. This protects you for payments in excess of your existing coverage.
The umbrella policy serves three purposes: it provides excess limits when the limits of underlying liability policies are exhausted by the payment of claims; it drops down and picks up where the underlying policy leaves off when the aggregate limit of the underlying policy in question is exhausted by the payment of claims; and it provides protection against some claims not covered by the underlying policies, subject to the assumption by the named insured of a self-insured retention
Who do I need to provide employers' liability cover for?
As a general rule of thumb, you need to provide cover for anyone who undertakes work solely for you in a paid capacity or who cannot employ a substitute if they are unable to do the work.
What is business interruption cover?
If you can’t work because your property has been stolen, damaged or destroyed, business interruption insurance can make up for the money you lose while you’re unable to trade or additional costs you pay out to get back up and running.
Can I cover my tools, business equipment and stock?
Yes, these are key areas of many business insurance policies. Make sure you insure your property for its full value and keep receipts or other proof of ownership.
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