BUSINESS INSURANCE

Risks to your business can arise for many reasons - interest rate or price increases, your competitors' activities, injuries through hazards in the workplace, skilled staff leaving or events such as fire or water damage through storms. Managing those risks is an important part of running your business.

Risk management is a systematic process of making a realistic evaluation of the true level of risks to your business. Many risks that can affect your Business are insurable. Before risks can be properly managed they need to be identified - you can begin with these questions:

• What can go wrong?
• What can we do to prevent it?
• What do we do if it happens?

When you're in business you deal with a variety of potential risks each day. Risk is not something you can avoid, but it is something you can manage. Risk management will increase the probability of success and reduce the probability of failure of your business.

Insurance is an essential part of running any business and risk management strategy. If you are operating a business, chances are that you will need more than just property insurance. Taking out the right insurance will help protect your business and minimise its exposure to risk.

Your insurance requirements will vary according to the type of business you are operating, but you should be aware that some forms of insurance are compulsory, such as workers' compensation and third party car insurance.

Under a Business Insurance Policy, there are different types of cover that provide for the physical loss of or damage to, your property from events including, but not limited to, fire, theft, lightning or explosion. For example, you may want to protect your stock and contents from theft, so you should choose to buy the theft section.

Business Insurance covers available include:

• Fire and Defined Events/Accidental Damage
  This can cover your Building, Contents and Stock against damage caused by a number of events listed in the policy wording (PDS) which usually includes Fire, Impact Damage and Storm Damage to name a few. Please note that Money and Theft are not usually covered in this section.
• Consequential Loss (Business Interruption)
  When an event occurs such as a Fire or Storm, and your business is unable to operate - this section can cover your loss of profit, increase in business expenses and/or wages.
• Theft
  This section covers Stock and Contents (excluding money) for theft from a break-in, which is occasioned by forcible entry.
• Glass and Signs
  This section covers accidental breakage of glass. This may include a shop window or glass display case or refrigeration cabinet.
• Money
  This covers your money for theft at the premises, in transit and at your private residence.
• Employee Dishonesty
  This covers you for any loss of property insured (including money) due to the fraudulent or dishonest conduct of an employee for their own gain or the financial benefit of any other person or organization.
• Goods in Transit
  This covers damage to property insured whilst in transit anywhere within the territorial limits caused by a defined event.
• Legal Liability
  This section provides cover for claims made against you for property damage or physical injury to third parties due to your negligence in the course of operating your business.
• Tax Probe/Audit
  If the tax department audits you, this section covers the cost of your accountant preparing information requested up to a fixed amount.
• Machinery Breakdown (Incl. Deterioration of Stock)
  This section covers loss due to fusion of electric motors that are used in your business.
• General Property (Portable Property)
  You can cover the costs associated with computer breakdown and data re-entry following an insured event.
• Computer Equipment
  Cover can be gained to cover loss of property whilst it is being transported away from your business premises. This can also include laptops used in the normal course of your business.