If you are in the market for business insurance cover, it is important that you identify all potential risks to your business. These might include:
- Natural perils such as wind, storm, hail, and lightning damage.
- Crime related dangers such as burglaries, armed robberies, theft of vehicles and the hijacking of vehicles.
- Legal liabilities include products being repaired and sold and motor accidents where the insured is negligent.
Always evaluate these risks in terms of them taking place and the potential size of the loss:
- The event of you having a motor vehicle accident is high and the size of the loss would be medium to large – such as a vehicle being written off as well as damage to a third party’s property or vehicle.
- Or the chances that a fire at the premises is low but the size of the loss could be very high.
Always apply proactive risk management:
Using the information listed above a business owner should decide whether some of the risks can be eliminated or reduced. Two good examples are listed here:
- Installing alarm systems, beams and burglar bars is a deterrent to burglars.
- Arranging with suppliers to deliver stock instead of collecting your own reduces loss and damage.
When running a business it is therefore advisable to insure against:
- Damage to computers, cash registers and other equipment.
- Loss of cash.
- Stock.
- Loss of earnings.
- Business vehicles.
- Legal liabilities.
- Machinery and equipment.
Don’t fall into the trap of overlooking and underestimating the blow of loss and damage of stock, buildings and damage to equipment. Also forgetting to consider the legal implications of the business and not adhering to the conditions set out by your insurer is not smart. Your business insurance intermediary needs to be informed of any changes taking place in the business, as not doing so could lead to a claim being refuted.
