Business Money Insurance Services - Office Insurance Guide
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Regardless of whether you own or rent your office premises, taking out the right sort of business office insurance will help to give you peace of mind allowing you focus on the things that really matter for your business.
 
Here Business Money Insurance Services explains the fundamentals of business office insurance and helps you decide if it is right for you
 
What is it?
 
Unlike other business insurances there is no legal requirement to have office insurance cover in place. (Depending on your business, the only insurance legally required is employer’s liability cover). However, it plays a key role in protecting you against something that could negatively impact your business.
 
Why do you need it?
 
Evidence from a Bank of Scotland Business Banking survey suggests that 50% of firms "have no plans outlined to help them recover from disasters such as flooding or fire". This study reveals that "more than half of respondents knew a disaster would put them out of business". (source: www.asyst.co.uk/industry-news.aspx?id=2387)
 
To help you prepare for the worst your office insurance policy covers you against the typical day-to-day risks of operating your business premises. These could potentially include incidences of fire, flood and burglary, as well as accidents such as a member of the public tripping on your premises. This may not sound too serious, but in today’s compensation culture, there is much risk involved.
 
Catastrophes have the potential to wipe businesses out. Whether or not the statistics bandied around that 80 per cent of businesses affected by a major incident are forced to close within 18 months, it’s likely that any disruption will, at the very least, take up a lot of your time affecting revenue. Money that can be the difference between success and failure in these recessionary times.

A number of corporations have something called a Business Continuity Plan to help them to understand potential risk factors. The main aim of such a plan is to help the business continue if the worst happens. It is understandable that small businesses do not have the resources to devote to such a plan but you may want to have the peace of mind that you have cover in place to help the business get back on its feet as soon as possible.
 
What’s included?
 
A typical office policy tends to combine several types of insurance into one policy - known in the trade as a "combined" policy. This is can be a good thing and will not only save you time shopping around but also money as well.
 
Contents insurance forms a core part of the policy. This will protect and replace everything in your premises if it is stolen, damaged or destroyed. Depending on the insurance provider window glass cover may be included, as could money held on the premises. As with any financial commitment insurance product check the small print to see exactly what is included.
 
For a greater level of peace of mind, keep an eye out for business interruption cover. This will provide your business with an element of compensation during the crisis.
 
What’s not typically included?
 
The old adage of "you get what you pay for" may apply. Most insurance companies will often offer additional cover to a policy at extra cost. Liability insurance (employer's, public and product and professional indemnity) are common additions.
 
Other policy additions may include:
 
 - Debt protection - to help you with the cost of pursuing customers that owe your business money and didn’t pay because of a crisis
 - Commercial legal protection - providing support against the potential legal costs involved in a dispute
 - Employee dishonesty cover - regarding the loss of money or property
 - Computer breakdown cover - protecting the business against the increased costs of trading if IT equipment fails
 - Terrorism cover - a supplement to business continuity cover if your business is directly affected by terrorism
 - Business travel cover - employee cover regardless of work location
 - Personal accident cover - in the event employees are injured or are killed.
 
What do you need to watch out for?
 
The needs of a small business are different to large multi-nationals. Maintaining control of costs is paramount - ask yourself whether you really need the cover. Protecting against an office fire is sensible but terrorism cover in a leafy suburb may not make as much sense.
 
Watch out for brokers that lower your premium by reducing your level of cover on things that are important to your business. And when you make a decision - read your policy, every detail, to ensure it is right for you. If you have questions then ask your broker that is what he/she is there for !!
 
If you would like to discuss your office insurance requirements call us free on 08000 686 001, email us on quoteme@bm-is.co.uk or visit our website at www.bm-is.co.uk