5 useful insurance elements for small businesses


Small and medium sized enterprises are notorious for being underinsured and a lot of this is probably down to a completely reasonable lack of understanding concerning the business insurance market.

Small business owners will be familiar with at least employers’ liability and public liability insurance policies as standard ways to cover their business, but there is a vast array of extra features that these policies can be packaged with. Let’s take a look at five of the more popular products that businesses find useful.

1. Business interruption
At YOUR Insurance, we advise this one for lots of our clients and it’s surprising how few businesses have it in place. If you have to stop trading for a prolonged period of time, business interruption aims to cover your losses and put you back to where you would have been had the incident never happened.

I often wonder if business owners feel this is somehow cheating, or that it’s bravado that makes them feel nothing can stop them from trading. Claims can range from an unplanned power cut lasting more than half an hour through to a fire that destroys the entire building.

Even if you’re a very agile and adaptable business, business interruption can go a long way to counter the unexpected.

2. Contents and stock
This is a common feature of many policies and is not dissimilar to parts of regular home insurance policies. Contents and stock cover will protect exactly that: the contents of your business and the value of your stock.

A lot of home insurance brokers report how frequently people underestimate the value of their contents for their home insurance and like residential properties, it is very easy to underestimate just how much it would cost to replace everything in your commercial property. It’s worth double checking just how much it would cost to replace everything and whether you can afford it.

Some businesses will deal with specialist stock and contents which may require a more specialised form of cover. As an example, cover for drugs can be offered to surgeries.

3. Money
Along the same lines as contents and stock, this cover will protect any cash that you keep on your premises. If you operate a shop, pub or restaurant, the amount of money you have on the premises at any one time may well be in a constant state of flux, but can still be covered.

It goes without saying that any money you keep onsite is a very attractive target for thieves. This cover protects you from any theft through forced entry or even through dishonest employees.

4. Glass
If you operate on a high street, those large windows at the front of your building can be a headache to deal with if a vandal takes a shine to your building. Glass cover will help you pay to fit a new window as well as covering the call out fees for getting the work done as soon as possible.

Nobody wants a gaping hole at the front of their store and if something happens to those windows, you will want to get it patched up as quickly as possible for both security and basic business reasons.

5. Buildings cover
A business is not tied to a single building indefinitely, but it is a crucial thing to keep operational. Building cover will pay out for the cost of making repairs to the structure that can easily become costly and overwhelming.

You’d think this was a well known element of cover, but a surprising number of businesses don’t take out insurance on their commercial property. Repair work to buildings are required on a frequent basis and the collective bills that SMEs pay on building work exceed £100m every year.

Summary
There are loads of other extra features specific to individual trades, ranging from license cover for pubs to tools cover for tradesmen. If you are in any doubt as to whether you are adequately covered for your business, it really is worth talking to a broker who will be able to tell you what you are and are not covered for.

YOUR Insurance specialises in public liability insurance for small and medium sized businesses involved in several trades and professions. You can compare quotes for your business online, or call one of our advisors on 0800 107 8949.

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