Business insurance is security against things going wrong or, at least, not going according to the smoothly envisaged plans so lovingly constructed beforehand. The term ‘business insurance’is a general name given to the different types of insurance that can be taken out to cover all types of eventualities. Some types of insurance are a legal requirement, while many others are optional. Some problems that confront a business can be ‘worked around’ and so probably don’t need insurance, but others, such as losing business due to your street being closed down in an anti-terrorist operation, cannot, so before taking out any insurance at all, think carefully about such things to help you decide what sort of business insurance policies you require.

The next stop is insurance brokers or insurance companies. Explain exactly what you do and what level of cover you require and they will not only advise you, but provide you with cost quotations. However, don’t accept the first quote as not all insurance companies are the same and you may be able to get a better deal by shopping around. Check all policies to see what comes as standard and what are ‘optional extras’ as they command a higher premium. Only when you have done this should you make a decision where to place your business. It’s extremely important to be truthful with the insurance companies when giving them details of your business because, in the event of a future claim, they will not pay out if you have not been honest. Furthermore, do not underinsure or overinsure. If you underinsure, it may save you some money on the premiums, but any claim will fall short of what you require to make good the damage, while if you overinsure, you just waste money on premiums as no insurance company is going to pay out for something that does not exist.

As for the types of insurance, apart from the legally required ones, it’s entirely up to you what insurance policies you take out. Every business is different, although some insurances such as buildings and contents make sense for all. However, whether you are a tenant or landlord can make a difference. As all businesses involve contact with the public, it’s worth taking out public liability insurance because this will protect you and your business if a member of the public should suffer a mishap while on your premises. Even though this kind of cover is not compulsory for all businesses, it makes sense as accidents can happen at any time and resulting claims can run so high that an uninsured business might be forced to close down.

Taking out insurance may seem like an unnecessary extra expense as it may seem that things only go wrong for other people. That, of course is not true. Accidents and other unforeseen occurrences can happen to anyone at any time, and a business needs to be prepared so that their operations are not disrupted or affected in a negative manner. So, do your homework and consult the experts for the right types of insurance for you.