When you start a small business you could be forgiven for being a bit bewildered by the complexity of the insurance possibilities. This article will attempt to explain some of the different types of insurance that are available to the small business, and why they are desirable, even obligatory, when running a business. Of course, the insurance you need does depend on the type of business that you’re running, and if you can find a reputable insurance company, you can discuss your needs with them, and they will give you what is known as a tailored quote, which means that it has been specifically constructed to suit you.Property and buildings insuranceThis covers the risks to your business property from fire and flood, lightening strike, explosion from gas escape, and being hit by aircraft, cars or trains. Most of these are in the ?low risk/high hr consultants stake’ category, which means that the likelihood of the damage is low but the cost, if disaster strikes, is high. The cover can be extended to cover ?All Risks’ which includes some accidental damage, but it won’t cover wear and tear, or damage caused because of lack of maintenance. In some countries of the EU, France for instance, some level of property insurance is obligatory, particularly that which covers third party liability. The buildings should be insured for rebuilding costs, often significantly higher than the market value. If your business involves letting, then as a landlord, you are obliged to take out property insurance.LiabilitiesPublic liability insurance should be taken out for the premises from which the business is run, but also for any area that you may be working in, for instance if you carry out repairs in clients homes.
