Business Helpsheets

Concerns about risk and insurance for your company

Your business is always at risk from various angles. You need to try to minimize the risk of the following and have procedures and crisis plans in place to deal with them.
This is a list of the most important risk aspects to consider...

• Reliance on key staff.
• Reliance on key customers.
• Reliance on key suppliers.
• Is there a partnership or shareholders agreement in place?
• Is there an IT strategy and does it cater for IT developments, viruses, system failures, backup procedures, and Data Protection Registration? Is there insurance cover for an IT disaster?
• Do stock levels cater for peaks & troughs in demand?
• Do you need insurance?

These are the insurances that need consideration...

• Public Liability Insurance - against claims from members of the public.
• Are major business assets insured?
• Keyman insurance - against the death or absence of a key employee or director.
• Building Insurance - if you own the freehold. This should be for the rebuilding cost, not market value.
• Stock
• Business Interruption - to cover you for loss of profits if something happens and your business is interrupted through no fault of your own, such as a fire, theft, etc.
• Credit Insurance - against bad debts.
• Directors’ and officers’ insurance against any claims made personally against them for breach of duty
• Employer's Liability - this is compulsory if you have employees
• Engineering Insurance - against the mechanical and electrical breakdown of machinery.
• Fidelity Insurance - against employees' theft or dishonesty.
• Fire Insurance - and other risks such as flood, storm damage, etc.
• Plate glass insurance - for shop fronts.
• Goods in transit insurance.
• Legal expenses cover - to cover legal fees in disputes.
• Product Liability - against claims arising from defective products.
• Professional Indemnity - against negligence claims. Typically applies to many professions such as accountants, solicitors, architects, doctors, etc.
• Travel insurance - against business travel by you or your employees.
• Working from home.
• Permanent Health Insurance - to compensate you for loss of income if unable to work.

You can approach an insurance broker to discuss what insurances are going to apply to your situation and how much cover you require.