Thursday, August 9, 2012

The Cost of Insuring a Business In The Recession

This article is brought to you by AXA public liability insurance.

With the squeeze of the current recession being felt by just about every business, one of the first questions that arises when business owners consider the outgoing overheads, is the viability of whether they really do need to pay for all the current insurance coverage that they presently have in force.
Obviously, different types of busine
sses require different types of insurance policies, but there are some that are common to most businesses, and a prudent business owner will consider carefully before cancelling those policies which provide him with the best economic protection for his business. Whilst not essential to every business, the most common policies are summarised as follows: –

Buildings, Fixtures & Fittings and Equipment Insurance
If the building is owned by the business or the tenant is held responsible for damage to the building under the terms of a rental agreement, then this insurance is essential, should the building become damaged by fire, storm or indeed virtually any eventuality. Very few businesses could personally suffer a major loss of this nature and of course the same would apply to any fixtures and fittings, specialised equipment, such as machinery or large amounts of computer hardware, that are contained with in the building.


Stock Insurance
Be it a small corner shop, a commercial retailer or a product warehouse,any loss or damage to a business' stock-in-trade could have a catastrophic effect on a business viability and therefore it is in that business' interest to ensure that any damage to stock is fully protected by appropriate insurance.


Employers Liability Insurance
Any individual, partnership or large business employing one or more staff is responsible under the law for any injury or damage occasioned to the staff member, whilst carrying out the terms and conditions of their employment. Claims for personal injury and the like have steadily increased over the years and it therefore makes economic sense to protect and employer's legal obligations with an insurance policy designed to cover losses of this nature.


Public Liability Insurance
A business owner is responsible for any damage or injury caused to members of the public who are legally visiting the business premises, normally regardless of how the damage or injury may be caused. Once more, such claims have been increasing in value over the years and for any business owner to envisage personally settling potentially large amounts in the event of a claim, could have a severe detrimental effect upon the continuing viability of that business.


Concluding Remarks
A business should never pay more than is necessary for insurance and therefore it is essential that relative sums insured be kept under close review. This will ensure that the correct premiums are paid whilst at the same time making sure that there is sufficient coverage to protect the company in the event of claims being made against them. The maximum "neither too much nor too little" is never more appropriate than in this current recession.


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