10 Types of Insurance You Need to Protect Your Business
The day you start a business is the day you should get comprehensive insurance. Your business continuity risk increases as the business grows in capacity and output. If you are the only employee in your business, your business risk is relatively small compared to having a few employees on your team. One unexpected event such as an issue with your health that takes you away from your business can impact the productivity levels and ultimately your revenue. A legal incident such as non-compliance with health and safety requirements may potentially result in the unexpected closure of your business. The right insurance will protect your business from such threats.
Here is a list of the most important business insurance types that you will need to consider:
1. Fire and Allied Perils Insurance
Business stock is normally covered under a separate policy from office contents. A fire and allied perils policy provides cover for your stock against fire, earthquakes, water damage, lightning, explosions, hail, snow and other such hazards that can cause damage to your business. Under this policy, company property and goods owned or insured by you can include plant machinery, fittings and fixtures plus tenant improvements.
2. Business Interruptions Insurance
This kind of insurance will compensate your business for loss of income following an unexpected breakdown event. Your business operations can be halted or interrupted for any number of reasons such as damage to your property or equipment breakdown, and when this happens it can cause significant financial loss. Business Interruptions Insurance provides cover for loss of business income as well as provision for expenses due at the time to ensure that your business can be maintained throughout this period.
3. Buildings Combined Insurance
Any damage to rented or owned buildings used for the operation of your business brought about by weather, water, fire, explosions and other hazards are covered by this kind of insurance. It covers loss of rent, accidental damage and theft up to 25%, and also includes all outbuildings, landlord fixtures and fittings, walls, gates, paved road and parking areas. If you have registered any vehicles for business use, it would make sense to consider insuring them as well.
4. Business All Risk Insurance
This kind of insurance provides comprehensive cover for loss or damage to equipment such as laptops, cell phones, etc. for when you’re in the office but also when you are away from your premises, including overseas.
5. Accidental Damage Insurance
Accidents can happen at your business premises on any given day. Accidental physical loss of, or damage to your property that can potentially harm or even halt business operations or revenue. Accidental damage insurance is the product that will provide adequate business cover for accidental damage and for property which is not more specifically insured.
6. Theft Insurance
Crime is a reality that we need to be prepared for and as a business owner; you need comprehensive insurance to compensate for your loss in the case of a break-in. Theft insurance covers robbery, burglary or larceny as well as any resultant damage. If your business handles significant cash, then you should consider money insurance as well.
7. Fidelity Guarantee Insurance
When your business employs staff, it potentially exposes your company to risks associated with employee theft or fraud. As their employer and business owner, you will be legally liable for their activities while in your employ. Fidelity Guarantee Insurance covers your business for theft or any financial loss incurred as a result of any fraudulent activities of your employees.
8. Liability Insurance
Liability is a highly specialised area of insurance which provides cover for third party claims against you and your business as well as any related legal costs.
As a business owner, you can potentially be held liable by the public and your clients for injury, damage or financial loss resulting from the operations of your business, your products or advice you give. Professional indemnity cover is designed for people in private practice, partnerships or companies that offer a professional service and covers such businesses against negligence claims. Product liability cover is for business owners who are involved in the supply chain of products to provide cover for damage or injury to third parties occurring as a result of defective products. Directors’ and officers’ liability is specifically for senior management where they may potentially be held personally liable for a loss.
9. Electronic Equipment Insurance
As an essential part of your business, electronic equipment such as computers, laptops and so forth need to be insured comprehensively. Electronic equipment insurance covers physical loss or damage caused to any electronic equipment used in business operations due to power surge or lightning, theft or accidental damage. It also covers such equipment in transit or while being stored at any premises or on-route, for a limited period.
10. Money Insurance
In the case of businesses operating with large amounts of money on premises or facing possible loss due to cash being transported to and from the bank, money insurance needs to be seriously considered to provide cover against possible unfortunate losses.
In conclusion, talk to your broker for more detail about the 10 types of cover mentioned here or to discuss your specific business insurance requirements.