If you have a small business or want to start one, a pressing concern will be how to insure your business and its assets against disasters such as fires, floods or theft.
Comprehensive insurance may not be as expensive as you fear and there are things you can do to reduce your premiums.
There is minimum cover you should have in any short-term insurance policy for your small business.
First, cover for your buildings, your stock in trade and equipment against losses as a result of a broad range of perils including fire, explosions, earthquakes and storm damage (commonly known as ‘fire and allied perils’)
Second, office contents cover which will insure all normal office equipment against fire, explosions, earthquakes, storm and burglary.
Theft cover protects you against loss of stock in trade and equipment following a burglary or hold-up at your business premises.
You should also have cover for interruption of business, in the event of your business suffering material damages. If you cannot maintain your normal turnover as a result, the reduction in turnover and a possible increase in cost of working are compensated.
If you receive cash or other forms of money, your policy should cover losses, and it should include “business all risks” cover, which provides cover for specified items, particularly when they are not used on your business premises.
Motor vehicles owned by the business should be covered, as well as electronic equipment such as computers, laptops, PABX systems, fax machines and other specialist electronic equipment.
Finally, don’t forget public liability cover. More and more people are becoming aware of their rights. Make sure you have adequate cover if somebody sustains injury on your premises or suffers a loss or damage as a result of a product you manufactured or work that you performed.
Other Types of Insurance Cover you can Consider
- Glass: damage to shop fronts and sign writing at your premises could be costly to repair. Accidental damage to the glass would be covered;
- Fidelity Guarantee: this is where the business insures itself against losses as a result of employee fraud;
- Accounts receivable: a business can insure possible losses, if for example, the business is destroyed in a fire, no records of accounts have remained and the business is unable to establish the amount due to them.
- Goods in transit: many businesses transport and deliver goods produced or sold. Make sure that you are covered in the eventuality of accidents or hijackings that could damage or destroy the goods being transported.
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