Other types of insurance to consider
• Commercial Property Insurance
Commercial property insurance covers the cost of repairing or rebuilding your business premises, your fixtures or fittings in the event of a number of insurable events:
- Water damage
- Wind damage
As with your normal home insurance, cover is broken down into building and contents cover. However policies for commercial property owners typically only cover landlord’s contents in most cases. A package policy would be more suitable for people wanting more than just the buildings insurance, such as Shop or commercial combined.
• Business interruption
If some unfortunate event hits your business - for example a large fire, the loss of your buildings or stock may actually be of secondary importance in a financial context.
Your inability to trade could hit profits for some time after the event and there may also be additional costs to cover in terms of third party fees and putting in place plans to keep trading.
You can insure against these losses by taking out business interruption cover. This type of policy will cover you for the loss of sales and profits during the period that you are unable to operate. You will need to discuss your individual requirements with your insurer as well as opening your books to them to assess what level of cover and premium to apply.
Make sure to check the basis of cover, for example increased costs of working or lost Gross profit. Also the indemnity period for example 12, 24 or 36 months.
• Professional Indemnity Insurance
If your business provides other businesses or individuals with professional advice, you should almost certainly consider professional indemnity insurance (PI) in the event that your advice turns out to be incorrect and results in financial loss for your clients.
Banks, insurance providers themselves, law firms, accountancy professionals, architects all require PI cover for their business. You should think wider than this though even if your business is not an institution such as these. Do you provide IT support or IT skills, do you send consultants to client’s premises? Your services may include elements that would benefit from PI cover so it is worth considering carefully.
• Product Liability Insurance
If your business designs, manufactures or sells on products, product liability insurance maybe something for you to consider. Your business may be held legally responsible for any injuries to people or damage to property caused by a faulty product. It is important to note that you can be held liable for faulty products even if you did not manufacture them.
Be sure to agree the insurance terms to ensure you are happy with any restrictions. Often insurance of this type will not cover you if the loss occurs as a result of your negligence or poor workmanship. This cover will sometimes be included when taking out public liability as part of a package, so may not always be stated separately to public liability.