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Things to Consider When Insuring Your Business

February 29, 2012 | Comments: 0 | Views: 144

I'm not sure that I have ever met anyone who likes paying for business insurance. Many businesses consider it a necessary but most would rather avoid it.

So, whilst it is an unpopular subject it is important to understand why it is required, the various types of policy you should consider and how it may be possible to mitigate your risk against lofty premiums.

In essence business insurance is designed to protect your business against the loss of assets either through damage, theft or negligence. Certain policies will also protect you against claims against advice or services you may offer and member of the public from harm.

The price you pay is depended on the likelihood and size (in terms of monetary value) of claims.

So if you are considering your first business insurance policy or are evaluating your existing policies take the time to read the following guide on the things to consider when insuring your business.

Most, not all businesses have premises of some kind. It is therefore be important to insure those premises for a range of risks. They would include; water damage, riots, malicious damage, fire accidental damage in terms of storms, car/lorry crashes. It is important to check the details of each policy as it may include limited cover in cases of Force Majeure.

Some policies include, all risk insurance. So without naming the risks covered it would consider what is not covered.

Much like residential insurance it is important to inform your insurer if the building is unoccupied for a period of time.

Also worth considering is separate insurance for stock, machinery and contents.

Many business owners choose indemnity cover, which deducts the cost of any wear and tear when settling a claim. Contents are also covered against theft, providing there has been forcible and violent entry to, or exit from, the premises.

You need to ensure that you take adequate steps to protect these contents. Insurance companies may insist on expensive security equipment if you are deemed a high risk. I know of several business who have installed security smoke screens at the behest of the insurance company due to several break-ins.

Business Interruption policies are not uncommon as a way to insure against loss of profit due to damaged equipment.

Any car, van or lorry used by your employees must, by law, must be insured. This means you must check those vehicles have the right insurance and are covered for business use. Take the time to consider whether your employees are covered for regular or occasion use and whether they have cover for samples, stock, products, etc.

Fleet car cover is also available for businesses with lots of sales staff on the road.

You need to be clear to the insurer whether or not your employees have a clean license. This can obviously affect the price of the insurance.

Home-based businesses have steadily increased of the years and as technology improves the scope is likely to increase. Normal residential household insurance will unlikely cover matters affecting your business and may run the risk of invalidating your existing policy.

Some insurance policies are sold directly by the insurers, but most are advice in policies are provided by specialist business insurance brokers. This service is particularly useful if you have a complicated business and you need to consider multiple policies.

When you are choosing business insurance policy you really need to shop around. Comparing quotes in terms of the price and the level of covered offered is so important. This might seem lengthy and a slightly dull process but, you don't want to be left short if you have to make a claim or be paying for a service that you simply do not need.

As soon as you discover loss or damage to your assets, you need to report it to your insurance provider. If you think that the loss or damage is due to a criminal act, you should report it to the police immediately. You should write down as many details as possible about what happened and when.

When it comes to making a claim your insurer may ask you for documents and paperwork to back up your claim. The law require that you should retain certain paperwork for a period of time.

In the event of a claim, you will want your business back up and running in a short a period as possible. This means having accurate documents of previous invoices, receipt, stock levels, equipment inventory would help.

Insurance is all about risk. The price you pay in terms of premiums is determined by the risk, whether it is in terms of monetary value or likelihood of a claim.

Business Insurance premiums may be decreased by reducing the risk. This is why many businesses conduct regular Health & Safety audits. Well document and clear procedures help mitigate the risk exposed to employees or members of the public and may help in reducing your premiums.

Most businesses require some types of Business insurance. Managing risk is part of this process. Arthur Savage provides a range of insurance for small business services that will help you analyse and decide the cover the best suits your needs. Call us on 0800 197 4809.

Source: EzineArticles
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