While most business owners accept the need for insurance, most businesses are nevertheless uninsured, under-insured or insured with out of date policies.
In times of inflation when property and stock values increase, it is important to ensure that there are adequate levels of insurance cover as an under-insured situation will result in a proportionate reduction in an insurance claim. Similarly, over-valuation will result, in wasted premiums, as the liability of an insurance company usually only extends to the cost of reinstatement of the insured asset.
Public liability
Claims for damages to third parties
Consider
A fire may start on your premises and spread to those owned by neighbours. Losses here might include profits and records.
Employers liability
Acts performed by your employees or subcontractors
Product liability
Injury or damage caused by the failure of your product
Loss of profits
Consequential loss
Cover may be obtained against loss of profits or increased costs that may arise as a result of disruption to your business.
Consider
- Loss of turnover
- Loss of sales, accounting and business records
- Replacement of lost plant and equipment
- Costs of maintaining the business as a going concern, e.g. paying the wages and salaries and other standing costs
- How long it will take to build up the turnover to the pre-accident level
- The accountancy charges in preparing estimates upon which to base claims
Fire and special perils
Decide whether the valuations placed on premises and plant reflect a fair cost of the rebuilding or reinstatement including:
- The cost of debris removal
- Professional fees e.g. architects
- Planning or possible anti-pollution requirements that maybe imposed by the local authorities.
Computers
- Are your computers insured
- Are you complying with the insurance company’s requirements for designated fire extinguishers?
Vehicles
- Have you considered the options available with regard to insuring business vehicles?
- Will you opt for full protection or will you accept costs below a particular level and insure for the excess?
- Discounts may be available for fleets of more than five vehicles.
Stock and work in progress – loss or damage
- Is the insured value adequate to cover seasonal fluctuations?
- Are goods in transit covered?
- Are stocks vulnerable to special risks, e.g. flooding, or power failure?
Engineering insurance
- Do you have potentially dangerous or unstable assets, e.g. pressure boilers, lifting gear, cranes etc.
Cash – theft or loss
- Such losses may arise on business premises or in transit, e.g. taking cash to the bank.
Personal accident
Have you considered insuring against your own serious illness or death? How would you or your dependents deal with:
- The continuation or disposal of the business
- Expenses of hospital and convalescence
- Loss of present earnings
- Repayment of your own mortgage
- Payment of inheritance tax
Key man insurance
- Are you covered for any damage or costs that may arise as a consequence of your death, or the death or serious incapacity of key staff members?
Life assurance
- Have you considered the benefits of life assurance as a tax efficient method of investment?
Personal assets
- House, jewellery, credit cards, furniture, caravans, boats etc.
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We recommend that you consult with a reputable insurance broker to make sure that your insurance cover is adequate and appropriate to you and the your business.
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Related Article: Customer Insolvency – Getting Your Goods Back
Please call Seamus Parfrey today on 021-4310266 if you need further information on insuring your business or a consultation.