Insuring business assets – why is it so important?
Business Content Insurance
With meetings to arrange, deadlines to meet, interviews to hold, jobs to tick off, and staff to organise, it can be easy to let important tasks slip from your mind – such as arranging that much-needed business contents insurance. The good news is, reputable brokers will find a policy to suit the type of work you do and your specific requirements. But why is insuring business assets so important?
It ensures the success and longevity of your business
Business is surprisingly fragile. You may have built up a wonderfully successful company and be a high-flying entrepreneur, but what would you do if your building burnt to the ground, or everything you owned was stolen? Such unfortunate incidents can grind even top organisations to a halt – let alone penny-pinching start-ups – so you must have some kind of protection in place for all company assets including buildings, land, raw materials, furniture, electrical equipment, cash, stocks, bonds, and intangible assets such as patents, copyrights, and intellectual property.
General business insurance will offer you a financial safety net in an emergency situation helping to ensure the success and longevity of your business. While finding the right policy might seem like a chore – or something you don’t want to add to your to-do list at this given time – you will be left extremely vulnerable without it, so it’s well-worth making the time to get your paperwork in order.
Insuring your business premises
As mentioned above, company assets include anything of value that your company owns including the physical buildings you occupy. Insuring your business premises is of paramount importance as most standard policies will protect you from a number of risks including fire and lightning, explosion, riot, malicious damage, floods, storms, and damage caused by vehicles.
All policies are different, however, so always read the small print and make sure the one you opt for covers your basic requirements. If a policy falls short in any areas, look for a new one or consider bolt-on cover for more thorough protection. For example, many businesses located near to possible terrorism targets such as airports or shopping centres are choosing to add terrorism insurance to their regular policies, so this could be something to consider down the line.
– If you’re a tenant
If you’re a tenant renting a commercial property, ask the person responsible to take out adequate insurance – this is usually the landlord. Commercial landlords should already have landlord’s insurance in place for their own benefit, but it’s worth checking if the success of your business relies on having specific space and equipment to operate.
– If you’re a landlord
If you’re a landlord, it’s a good idea to look for an ‘all-risk’ insurance which covers almost every eventuality – the ones that are not included are usually listed for you to check. Remember to insure your premises for the full rebuilding cost including materials and labour as you don’t want to run the risk of being underinsured.
Insuring company equipment
As well as taking out buildings insurance, you should also look into asset protection insurance in order to safeguard your company equipment. You can insure assets of any size or worth including laptops, mobile phones, printers, heavy factory machinery, furniture, carpets, light fittings, blinds, artwork, and other items that you’d need to replace during an emergency – you may be surprised at how much you’d actually need to buy again should something go wrong.
Make careful calculations
When it comes to insuring company equipment, however, make sure you take into account not only the cost of replacing specific items but how much income your company could lose as a result of stolen/damaged equipment. Take your time to work out exact costs and avoid being underinsured as this too could leave an unwanted dent in your bank balance.
Moreover, make sure the policy you go for covers the cost of replacing the equipment as new rather than its actual cash value. This type of insurance might be slightly more costly, but it’s worth having if you would need top-quality replacements should an unfortunate event occur.
– Read the small print
As with buildings insurance, there are numerous policies available that can be sourced for you via a reputable broker – just remember to read the small print to ensure you have adequate protection and to add bolt-on cover if needs be.
– Keep your policy updated
Don’t forget to keep your insurance policy updated. If you have more contents on site during certain times of the year such as Christmas or Easter, you should inform your insurer to guarantee cover – the same applies if you buy more equipment.
– Be aware of specific clauses
It’s also worth noting that many insurance policies have specific clauses. For example, you may be insured in the event of a theft, but not if you’ve left all the doors wide open, so it’s a good idea to brush up on company safety measures in general.
Every business is different, so if you’ve specific needs that aren’t covered by general insurance policies, you may need specialist insurance to ensure you’re well protected. Data processing insurance, for instance, is ideal for digital companies as it provides cover for electronic media and electronic data-processing equipment. Similarly, if you’re in the trading industry, goods in transit insurance might be essential or you might want to look into loss of cash insurance.
While there are some insurance policies businesses must have by law such as employer’s liability insurance, asset-based insurance is a little more flexible allowing you to decide what you do and don’t need. There are many specialist policies out there including glass insurance, engineering insurance, and policies which include tradesman’s tools, so there’s no excuse for being inadequately insured.
In short, taking out the correct insurance is essential for companies both large and small as it offers the upmost protection during an emergency situation. Without insurance, businesses can crash and burn and, as it takes significant funds to restart a business, many fail to get back off the ground. So, with this in mind, don’t take any risks and instead make sure you have adequate cover which meets the needs of your organisation.
Have you Insured the contents of your business?
Invicta Business, is a regulated insurance broker based in Kent, Sevenoaks. We have access to a panel of specialist insurance providers enabling us to provide you with a competitive price on your content insurance.
Other related insurance services for commercial businesses include: tradesmen insurance, office insurance, shop and retail insurance, commercial motor insurance, insurance cover for restaurants and pubs, hotel and guesthouse cover, and more. Contact Invicta Business today to discuss your insurance requirements on 0330 0450032.