Business and Company Insurance

There is no denying the fact that success of a business depends on the hard work of the team but one disaster can wipe out your efforts and bring down the profits to dust. So, to avoid such an instance, you need to insure your business, whether it is a small enterprise or a large corporation.

There are insurance companies, which have policies that combine protection for all major property and liability risks in one package. You can also opt for separate coverage. Such a policy is called a business owners' policy (BOP). Larger companies may purchase a commercial package policy.

BOPs include property insurance for buildings and equipments owned by the company. If there is any loss of income due to disruption of operation and business because of accidents like fire, it can be covered under the Business Interruption Insurance.

There are liabilities, which cover the company's legal responsibility for the harm it may cause to others. It is the result of your company's failure to do the business operations. It can also be the bodily injury or property damage caused due to defective products, faulty installations and errors in services provided.

However, BOPs don't cover professional liability, auto insurance, worker's compensation or health and disability insurance. Separate policies are needed for professional services, vehicles and employees. Generally, floods, earthquakes and terrorist attacks are not covered in the business insurance. You will have to ensure it is covered or that you take out the relevant specific cover seperately.

Whatever your final insurance decision, you should review it at least every six months. Your business can change rapidly, especially in the first few years and insurance needs change with it. Keep your cover up to date by reviewing your coverage and make changes where necessary.

INSURANCE COVERAGE CHECKLIST:

• Can you afford the loss?
• What coverage is required by National, regional or local law?
• What SPECIFIC items are covered by the policy?
• Are items to be insured for their replacement cost or original value?
• What SPECIFIC items are EXCLUDED by the policy?
• If there is a co-insurance clause, do you have adequate coverage?
• Have you chosen deductibles wisely in order to minimize costs?
• Do any of the policies you are considering duplicate or overlap one another?
• Do you need any insurance based on location, e.g., flood, earthquake?

Our Recommendations:

Decision Finance - Business Services Specialist

Swinton - Business Insurance from the leading insurance company.

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