The Unthinkable – Contents Insurance
Business contents insurance shares some similarities with home contents insurance. However, it can come along as part of a general business plan. Or, as a business owner you could take out a separate policy. For customer-facing business, this is a particularly important type of cover to have. When it comes to your merchandise, stock and equipment - you cannot afford an interruption. With business contents cover, your equipment and stock can be replaced quickly and efficiently. With very little extra cost.
Covering your assets shouldn’t end at home. Especially if you own a brick-and-mortar business. Whether it’s a dental practice, an art gallery, a restaurant or a shop – you need business contents insurance.
It’s simple: your business premises contain expensive, valuable equipment and merchandise.
Any business that owns the property it operates out of should have commercial property insurance. For the majority, this isn’t necessary. Most companies actually rent their premises, so they don’t have to worry about this aspect. However, companies often invest in equipment and merchandise. Which naturally means…
…you wouldn’t be too happy if your investment was lost, damaged or stolen.
Asset protection with business contents insurance and more
Business contents insurance is there to ensure that your business can get back on its feet quickly. This is particularly important for companies that provide customer-facing services. This can include shops, restaurants, hairdressers, computer repair stores and anything else where people can walk in off the street.
Business owners often have a variety of different types of cover, however. Among these are public liability insurance and general business cover. In many cases, business contents insurance is included in this. As a business operator, you may think that accidents won’t happen. However, consider the benefits of business contents cover.
- Business contents cover is often included within plans that have public liability insurance. Not only is your equipment/merchandise protected, you’re also protected from claims set against your company by third parties.
- Plans can also include business insurance – which is great if you want to secure contracts with clients. This can protect you from certain mishaps that can lose you money.
The specifics of business contents cover
In essence, business contents insurance is that different from home contents cover. What you’re doing is taking out an insurance plan to cover you for the loss, damage or theft of equipment and merchandise that you have on your business premises. However, when taking out this cover there are a couple of things you should keep in mind.
- No matter the contents, make sure that you insure it for the replacement price and not the initial purchase price. Depending on your business, busier times may require you to ask for more compensation (Christmas is a good example). Always be prepared!
- Just like with home contents insurance, it may be better to insure high-value items separately. Dental and medical equipment for doctors’ practices are a good example.
- In addition, remember that specialist equipment may have gone up in price since your initial purchase. For this reason, you’ll want to replace it like-for-like. Always do your research for taking out a policy!
Equipment and stock can be insured with two specific types of cover. These are…
- Replacement as new policies. Simply put, this type replaces an item with a new one.
- If you use an indemnity policy, you can get your current merchandise/equipment replaced at current market value.
Further points to note
Many companies choose to take out business interruption insurance. This type of cover is designed to protect your company from loss of income if your business flow gets interrupted. Quite a few people may ask if business contents insurance can cover for this – after all, losing a piece of equipment or merchandise can sometimes be considered a business interruption. However, the answer is no: business contents insurance only replaces the lost contents.
Additional Insurances Worth Considering
Life Insurance is another insurance worth considering. 1000s of Brits have it already, and those that don't can consider securing one for themselves and their family.
Life insurance is similar to other insurances you may have - you pay a premium to the provider who provides you with an agreed level of cover then, if you pass whilst the plan is in force, the provider will pay the agreed sum assured to either the named beneficiaries of the plan or your estate.