What is it?
Business insurance is an insurance package designed to cover the major exposures that a business will face during its day-to-day operations. Business insurance is a customisable package therefore allowing flexibility in the types and level of cover selected.
Who needs it?
All businesses have risks and exposures. No matter how small or remote a perceived risk may be, the consequences of not having cover in place can be substantial. Therefore, anyone who operates a business regardless of its size or nature, needs some level of business insurance.
What does it cover?
- Public and Products Liability – protects your business against claims of bodily injury or third party property damage as a result of your business activities. Example: A plumber installs a pipe in an upstairs bathroom which bursts resulting in damage to a person’s home. The owner is holding the plumber responsible. Therefore the plumber’s liability cover will help either defend them or pay for the damages (if deemed legally liable for the resultant damage).
- Property Damage – protects against damage to your business premises and your contents.
- Theft – covers your contents against theft.
- Business Interruption – provides financial protection by returning your business to a pre-loss position, should the business not be able to operate as a result to a property loss such as a fire. Example: A fire destroys a manufacturing business. Business interruption can cover the lost profit, staff wages, ongoing expenses and extra costs required to get the business back to a pre-loss position.
- Money – covers your business against the theft of money during and outside of hours.
- Glass – covers the replacement value of internal and external glass. This is a requirement under many commercial property lease agreements.
- Goods in Transit – protects against a loss of good you are transporting.
- Equipment Breakdown – covers the cost of repair for the unexpected breakdown of electronic and mechanical items. This can also be extended to include deterioration of stock such as those in fridges and freezers.
- General Property – a type of cover designed to cover tools of trade or any portable item as cover is extended to anywhere the item is taken.
- Other sections – Tax audit, Employee dishonesty.
What is excluded?
Every policy has exclusions. Many exclusions are added based on a common sense approach. As an example, insurers will not cover deliberate acts, nor will they cover gradual wear and tear of insured property.
Specialist classes of insurance – the business packs do not offer professional indemnity cover for those providing advice or workers compensation cover for employees. Safeguard Insurance can advise on what additional polices are needed.