Business Insurance Information
Table of Contents:
- Business Insurance Information
- Business Insurance Examples
- Business Insurance Premiums
- Business Interruption Insurance Requirements:
The term “business insurance” usually refers to an insurance policy that protects against operational loss of a trading business. The benefits on the policy will depend on the provider. Type of policy, wording and possible exclusions by the provider will determine the quality.
There is a wide range of possible business insurance products available. Regardless of the age of your business, it is very likely that you will require some insurance products. Not all business operations and industries will require the same types of insurance.
The worst thing that can happen to a business is the loss of production. This event can cripple a young business. Loss can be because of various factors. For example, if you have a company that fully relies on computers. A serious lightning strike can change everything. The worst-case scenario leaves the business without electronics completely. The business owner will have to get computers elsewhere or claim from an insurance policy. Claiming from your business insurance will ensure that you are back in operation regardless of your cash flow. Imagine having to replace all your electronics just before your biggest client pays you. It might leave you in a position every business owner fears.
Safeguarding your company against potential loss and risk is relatively easy. As with short term insurance, you can get it quickly and hassle free. Business insurance does not have to cost you an arm and a leg. You can get full business insurance at an affordable rate. Do not wait until tragedy strikes your growing business. Being prepared is the best defence against loss.
Business Insurance Examples
There are several different types of business insurance products that can be lucrative for a business.
Some of the most common type will include:
Key Person Insurance: Often referred to as a Buy/Sell Agreement.
This type of insurance can insure the life of a very important person in the business. If, for example, you might lose the person responsible for generating the company’s income. You might need to replace that person at a high cost. Key person insurance can assist the remaining partners or owner in finding a replacement. The money can even be used to buy the stake of a disabled partner. It allows the company to continue trading with the least amount of inconvenience.
General Liability Insurance:
This important type of insurance will be compulsory in certain industries. This policy will cover a business against various liability claims. It can be because of negligence, personnel error, injury on company property, etc. It is particularly important in most industries that have public access. Some liability policies will even cover legal fees in the event of a liability claim.
This policy will safeguard a business against any claims that may arise from products. It can be products supplied or manufactured by the insured company. Liability can include injury or death because of the product supplied by the insured company.
General Insurance Cover:
It is the most common type of business insurance available. This policy can be used to cover the contents of your office. If you reply on machinery or electronics to generate income, this policy will be vital.
Business Insurance Premiums
Unlike private short term insurance, there is more information used to determine the premiums for your company. Depending on the product, there will be a wide range of elements used. It is to determine the amount of risks associated with your particular business. Business insurance providers may use historical data for business in the same industry. Some other important factors that will be considered are the size, type of business to name just a few.
Business risks will usually be categorized in several brackets. Among them will usually be operational hazards, experience, location, etc. Business insurance can be slightly more complicated; this does not fall on the consumer. Usually, highly qualified actuaries are used to determine the exact risk of your business.
Business Interruption Insurance Requirements:
• Gross Profit: This should be your annual figure.
• Indemnity Period: The estimated time it will take to get the business back up and running e.g. three months, 6 months, etc.
• A business description
• Any extensions and limits required
It is wise to prevent potential loss of income due to liability, loss, damage or theft. A company can be destroyed if there is a lack of adequate insurance products. It is suggested that you speak to a professional consultant to ensure that you cover all the required avenues in your specific business. Make sure that you avoid destruction.
It is exceptionally important for small businesses to have comprehensive cover. To get a free business insurance quote, feel free to complete our basic contact form. A friendly consultant will get in touch with you as soon as possible.