6 Areas You May Not Have Thought Business Insurance Covers
Your business is your livelihood. So it’s vital to protect your business assets and revenue against potential risks that may impact your business, such as fire, storms, theft and accidental damage.
When insuring your business you should consider cover to protect the following types of assets:
There are some items that you probably don’t give much thought to (like the old sofa in the staff kitchen), however imagine if you lost the everyday things your business relies on to operate.
Your contents includes everything you use to run your business from your premises, such as furniture (desks, chairs, filing cabinets and the boardroom table), technology (computers, laptops, projectors and photocopiers), appliances (fridge, microwave and dishwasher), and any other fittings.
Keeping an office inventory list can also assist you to keep track of your physical assets and will come in handy should you need to make a claim.
Depending on the type of business you operate, you may hold some or all of you stock at your business premises. How would manage if your stock was destroyed or stolen? Would you be able to continue running your business?
Stock can include merchandise stored on your premises, floor and trading stock, as well as displays and samples. It also includes your customer’s goods at your premises that you are responsible for.
You can cover portable items owned by you, such as laptops, tablets, mobile phones, photographic equipment, trade person’s tools, and sporting equipment.
It’s important to keep an up-to-date record of your portable items, as they can be difficult to track if lost or stolen. Keep you receipts and note down serial numbers as proof of ownership. It’s also a good idea to take photos of these kinds of possessions so they can be easily identified. And always back up information stored on portable electronic equipment.
If you own your building would you be able to afford to re-build or restore your building if it was affected by fire or a storm?
The cost of repairing or replacing a building may be significantly more than you expect, as building regulations are likely to have changed over the years since your premises were built.
It’s also important to ensure you don’t underinsure your building or you could be in for an unpleasant surprise when the time comes to make a claim and you are left severely out of pocket. Not only will the costs be more than your payout, but your payout could be less than you think. As with all the other cover options offered through Business Insurance if you make a claim on an underinsured building, (perhaps you were hoping to saving on some premium) the insurer could discount your claim amount. For example if your building is valued at $500,000 and you only insure it for $300,000, you are effectively underinsured by 40%. Even if you put in a claim for $100,000 your insurer could possibly only pay out $75,000.
Did you know your Business Insurance policy can also provide cover for money that belongs to your business if it was lost, stolen or damaged whilst on your premises, in transit to or from your premises, or in your personal custody?
If you business holds a lot of cash, it could be worth insuring for added peace of mind.
Imagine if a bad storm caused the roof of your office to cave in, or a fire swept through leaving it in ruins. Would you still be able to run your business and earn an income?
Business Interruption provides cover for the loss of income, as well as some of the increased costs of running your business as a result of interruption caused by events covered under a policy. And the good news is, you can include Business Interruption as part of your Business Insurance package.
It’s important to remember that your business will change over time, and so will your assets, therefore it’s important to review them regularly and update your policy where required. So if you haven’t reviewed your current policy in a while, now is the time to do it.
BizCover offers a range of insurance solutions to protect your business. You can tailor a policy to suit your needs and include other essential covers such as Public Liability and Professional Indemnity insurance to ensure you are not left financially responsible for the costs of a legal claim should a third party get injured or suffer property damage, or incur a loss due the advise you provide whist you are doing business.