Guide to Business Insurance for Beginners

We look at the basics of business insurance from buildings and contents to business interruption.

Business Insurance: Need to Know

Homeowners know that buildings and contents insurance are must-haves, but not all business owners are aware of the importance of similar cover for their work premises.

As with any insurance, the point of business buildings insurance is to compensate and help ease the difficulties of repairs, temporary relocation or rebuilding if the worst should happen.

So when looking for business insurance, consider any and all buildings your company owns or uses, and how you would pay for and replace everything inside them.

Buildings and contents insurance

All buildings and everything inside – which means stock, equipment, office furniture and everything down to the last pen or staple – are an integral part of your business.

Protect them with insurance, so in if the unexpected happens, you could claim to quickly put the problem right so you can carry on with your business as quickly and smoothly as possible.

When insuring a building, cover is not for the current market value of the property, but the rebuild value – which is the cost of clearing and putting up an identical building on the site less the cost of the land.

For business contents insurance, consider everything. This means all fittings and equipment, from office desks and chairs, computers and photocopiers, to pens and paperclips. Do not forget to include exterior features too, like security gates and signage.
Buying business insurance

Business insurance firms will want details of the property and contents, including value, and demonstrate that you have the proper security measures.

Some insurers set minimum security standards, such as a five-lever mortice deadlocks on doors, keypad or card operated entry systems, locks on all windows and so on.

Buying business insurance is the same as buying any other policy. Shop around for the best cover at a value-for-money price – and if you have a large business, think about handing the job to a specialist broker.

Business interruption insurance

Business interruption or ‘loss of income’ insurance kick in when you cannot open for trading for some reason – think flood, fire or some other major disaster.

The cover reimburses loss of earnings following damage to your premises or property and can take away some of the stress while you work to reopen the business.

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