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Insurance: Which policies do you need to buy?

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Property Insurance and Property Owners’ Liability Insurance

In most cases a business will start at home before you experience growth and your empire takes off. Once this happens and you relocate from the spare room to operate in your own business space, you will need to invest in a couple of policies to protect your business.

Firstly Property Insurance, like buildings insurance at home, will cover you in the unfortunate event of a fire, flood or theft. 

The second type of cover you need to look into – if you own the building – is Property Owners’ Liability Insurance. This enables you to meet any costs and damages awarded to a member of the public if they suffer an injury following an accident on, or linked to, your premises.

Business continuity

Finally, a business continuity plan is vital. Most businesses don’t usually survive after a major disaster, but if you plan well, you can dust yourself down and get back on your feet.

Business continuity planning is all about identifying parts of your business that you simply can’t function without such as IT, stock, premises, staff and planning how to carry on if an incident occurs. 

Any incident, be it natural, accidental or deliberate, can cause huge disruption to your business. But with foresight and clever planning – rather than waiting for it to happen – you will ensure your business can continue to function in the quickest time possible. 

Some of the main things you need to plan for are potential accidents and risks to your staff and the public being injured, awareness of potential property damage and eventualities that could impact the day-to-day running of your business. 

Once you have an idea of the consequences of each eventuality you will be ready to speak to an insurance expert to obtain the necessary cover.

Having the right cover demonstrates that you are a reputable business which takes health and safety and business continuity seriously, and more so that you fully understand your own responsibilities and requirements.

The moral of the story is most definitely plan for the worst and ensure you have the right cover in place.

Tim Lazenby is managing director of FSB Insurance Service.

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