Business insurance is cover that protects a business against a range of losses that can impact on the business during its operations. Cover can vary depending on the policy but can include the following items:
- Property damage
- Legal liability insurance
- Loss of turnover cover
- Various employee related risks.
Features of Business Insurance
- Tailored specifically for the risks facing businesses
- Covers a range of business risks
- The risks will largely depend on the nature of the business so the policy and cover is customized to suit the insured’s risks
- Typically the policy is in the name of the business
Advantages of Business Insurance
- Protect the assets of the business against theft and loss , assets covered include property , inventory and business vehicles.
- It’s possible to protect the turnover of the business through business insurance , if the business suffers a loss through natural disaster or man-made disaster.
- Business insurance can protect the business against claims from clients and the general public through public liability insurance.
- Businesses are tasked with assuming a level of risk in order to generate a profit. Using business insurance enables the management of a business to manage risks over which they have limited control.
Disadvantages of Business Insurance
- The insured may not be fully indemnified for the full extent of the losses suffered. In some cases depending on the policy condition an excess will apply.
- In some cases the premiums may be excessive in relation to the potential losses , so it may make sense to self-insure these losses.
Generally speaking the advantages of business insurance far outweigh the disadvantages and its important always consider all the factors before making a decision. It may be advantageous to discuss options with a insurance adviser before making a decision.
How To Apply for Business Insurance
Complete the form here to find out more about business insurance and one of our partners will contact you