This is where business cover gets difficult and why you need to get proper advice. Your local Coversure broker will be more than happy to assess your business needs and you can contact them by clicking here. We can, however, offer you the following generic business advice.
Shops and small offices can get package insurance, which is business cover which combines a number of different policies under one premium. Package insurance offers you different sections in your business policy to provide cover for buildings, contents and stock. To get package cover you need to break down the valuations of your contents and stock depending on your trade. Generally insurers want to know the value of any tobacco, wines and spirits, frozen food and other 'high risk' stock separately from lower risk stock, fixtures and fittings.
More complex businesses, such as warehouses and factories, may need a survey before business insurance can be taken out. The risk on these will be assessed in terms of the various hazards of fire, and health and safety issues, as well as the valuations of the property and its contents. These larger risks are covered by policies which are known as 'commercial combined' policies and you can find out more about them by contacting your local Coversure office.
Both package and commercial combined policies can typically provide cover for buildings, contents, stock, money, liability to employees and visitors, goods in transit and sometimes business interruption.
Directors' and Officers' cover has been specifically designed to pay for legal costs associated with allegations of a wrongful act committed by either a director or an officer of a company.
Business cover is a complicated area of the insurance world and it pays to get good advice for your business. Coversure's team of independent brokers would be more than happy to advise you on your business insurance needs and you can contact your local office by clicking here. As an alternative first step you can find out which business insurances are mandatory for your business, and which insurances are recommended for your business, by using the Health & Safety Executive's Guide.
Business insurance will not normally cover accidental damage to your buildings or property, though such cover can be arranged as a separate option. There will also be a policy excess, which will be an amount of money which you will pay in the event of you having a claim. Typically this will be from £100 to £250 per claim except for claims such as subsidence, where it may be £1000.
It's impossible to say what your business insurance will cost without an assessment of your business's needs. It will depend on the values and type of stocks that you hold, the type of trade that you carry out and so on. The amount you pay for your insurance is called your premium. Insurers calculate your premium based on a number of things, including the work you do, the size of your contracts, and the cover types and cover levels you choose. If you'd like to know how much business cover would be for you, then please contact your local Coversure Office.
If you buy a package business insurance policy, do be aware that the package may not fulfil all of your insurance needs. For instance, these policies typically do not provide cover for legal disputes. A legal protection policy is an inexpensive way of filling this gap and will provide you with access to legal advice and representation for employment disputes, tax investigations, disputes with customers, disputes with licensing authorities and so on. If you'd like to know how much Legal Expenses insurance would be for you, then please contact your local Coversure Office.
When taking out business cover it is worth checking the amount of liability cover that you need. Most packages provide public liability insurance of up to £2 million. However, you may do business with organisations in such a way that will require you to have liability insurance of more than this. For example, if you have a café and put tables on the pavement on nice summer evenings, your local authority may have rules that require you to have £10 million of liability cover. You can buy an 'excess layer' on to your public liability insurance to cover this.
If you are a tenant, don't overlook the fact that most commercial property leases are 'full insuring and repairing' leases. This means that you may be responsible for the cost of insuring the buildings, even though you are not the owner and so you may wish to take out commercial buildings insurance cover too.
Some policies 'index link' the cover that they give you so that you don't have to think about reviewing the cover every time the policy comes up for renewal.
Building societies and banks will often lead you to believe that you must purchase business insurances from them. This is not the case even when they are only providing basic banking facilities. Be aware that you are likely to get better value and better advice from a broker than from a bank.
This is just an introduction to business insurance and is not intended to be representative of the covers or restrictions offered by any particular insurance or that all insurance provide the protection described. You can get a recommendation for a particular insurance to suit your own circumstances by talking to the skilled staff at your local Coversure office.
If you want our best price for your insurance or just want to make sure you have exactly the cover you need, it’s best to talk to your local Coversure office who will have access to the latest schemes and discounts.
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