the right insurance for a home-based business
DESCRIPTION
Majority of the home-based businesses in the UK don't have enough insurance coverage. If these people believe that they’re protected by their homeowners insurance, they’re wrong. They gamble with their future without even knowing it.TRANSCRIPT
The Right Insurance for a Home-
Based Business
Majority of the home-based businesses in the UK don't have enough insurance
coverage. If these people believe that they’re protected by their homeowners
insurance, they’re wrong. They gamble with their future without even knowing it.
Homeowners' policies typically limit loss of business property to around two
thousand euros, without even including cover losses away from the home, and
excluding liability for business-related activity. But what is two grand compared to
much larger amounts lost in hardware and software, or an expensive lawsuit due
to a simple thing like slipping, or a product accidentally injuring someone?
Talking About Numbers
This will sound tedious, but anyone can actually derive a lot of things from numbers – quite why
entrepreneurs keep all the paperwork involved in their business. These help determine inventory,
equipment, and all assets that contribute to their net worth. They then devise a system to keep track of
how many customers frequent their homes, and then try to foresee what will happen if something
interrupts business hours, the scariest of them all being liability and property damage.
This information should give an idea on the type of insurance that a business needs.
Main Insurance Policies
There are many types of insurance policies that brokers offer these days, but it’s safe to start with the
main three.
The first would be Public Liability Insurance, which cover claims arising from injuries and damages to all
persons and properties outside of a business’ employment. Next would be Employers’ Liability
Insurance, which insures claims arising from its employees’ illness, injury or death that resulted from
their job. Finally, there’s Professional Indemnity Insurance, which covers claims of negligence or bad
professional advice. This is the type acquired by doctors, lawyers, engineers, and the like.
Of course there are other options out there, along with add-ons and tailor fit setups. Find a policy that
fits perfectly, and evaluate it on an annual basis.
Protect Against Crime, Disaster, Accidents, and Liabilities
Keep crime and disaster away with deadbolt locks, motion-sensitive outside lights, burglar alarms, smoke
detectors, and fire extinguishers. Minimise unwanted attention by keeping office equipment out of view
from outside. Fireproof everything, from electrical circuits to money and documents, enforce safety
rules, and develop a disaster recovery plan to minimise losses. And to address a frequent problem faced
by hard workers, don't accept work beyond your capabilities. Read the fine print in contracts, and have
a lawyer review anything before you sign it.
SOURCES:
http://professionalindemnityinsurance.co.uk/
http://www.entrepreneur.com/