Own a Business? then choose the right Insurance cover
When you own a business there are a number of threats ranging from dishonest employees, to discontented customers, to fire and other events outside of your control. Most things can be insured, but at a cost. So to stay in business it’s important to get the right level of cover for your needs at an affordable price.
Before shopping for business insurance, look at the threats your company and industry is most likely to face, and if these could threaten your company’s survival. Do a risk assessment, or have an insurance broker do this for you – get it in writing and if in doubt talk to others in your industry.
Once given a policy to consider then read it all including the small print, as one critical clause could see you wasting your money. If you don’t understand some of the terms, seek clarification from your insurance broker or agent.
The key Insurances to consider when insuring your Business are:
- Liability insurance
- Property and buildings insurance
- Business assets and equipment insurance (contents cover)
- Motor vehicle insurance (van insurance and business car insurance)
There is also:
Business interruption insurance – unless otherwise agreed, basic business interruption kicks in only after a physical loss of property shuts you down, however shut off streets blocking customers from your business may not be covered. A lot has been learnt here through the Canterbury Earthquake with some businesses forced to close down. Make sure all possible threats are covered. Look at your business insurance cover as this may include business interruption cover.
Key man insurance – if you lose a valuable team member or if they become disabled. For a small business owner this may merely be ensuring the correct life and disability policies are in place. For partnerships however, such a policy could be used to buy out a member or replace a person. When buying it, buy enough to cover the cost of finding a replacement and maintaining support staff and facilities until the new person begins to earn his keep.
Directors and officers liability – Generally for larger companies where the leadership team could be sued.