BG602 Considering Insurance
Taxco Business Guide 
Insurance
Objective
The objective of this business guide is to point out important considerations regarding insuring your business, the types of insurance and how Taxco and Eminent Wealth can assist you therewith.
Introduction
When starting a new business, you will no doubt recognise the need for insurance. It can
provide compensation and peace of mind should things go wrong, but can also represent a
significant cost. Careful consideration should thus be given to this part of your business.
Insuring Your Business
Comprehensive insurance for business motor vehicles and employer's unemployment and workmen’s compensation insurance are a legal requirement. Other types of insurance such as public liability, consequential loss, business assets, Key-man policies and bad debts should further be considered.
Optional insurance
Motor vehicles liability insurance you will feel is also compulsory and to our mind must cover at least third party, fire and theft.
Public liability
Although strictly this is not compulsory, it is inexpensive and for the price you will almost certainly feel that you need cover under this heading. It covers claims for damages to third parties.
Property
You can think about limiting cover to specific risks such as fire and flood or providing more general cover. Consider the level of cover you would need for the premises (if you own the building), equipment and stock. If you rent your premises then you should check that the landlord has the appropriate cover.
Theft
If your business does not involve expensive items of equipment then you might decide to pass on this one at least initially. If you do decide to provide cover for theft then an insurer will require a reasonable minimum level of security.
Professional indemnity
This is only likely to be necessary if you give advice which could make you liable. It protects against any loss suffered by your customers as a result of negligent advice. In some professions, as with SAIPA for professional accountants, the law and financial services, it is compulsory. However it is common in other sectors such as computer consultancy and publishing.
Business interruption
This covers compensation for lost profits and extra costs if your business is disrupted due to say a fire or flood. It is also referred to as, consequential loss- insurance.
Key man
A small business is often dependent on key members of staff. What would happen if they became seriously ill or died? Do you need to consider insurance cover to pay out in such a situation?
Specialised insurance
A whole host of different policies cover a range of specialist situations, for example engineering insurance and computer policies.
Working from home
If you are planning to start your new business from home then don’t assume that your normal household insurance will be enough. It will not usually cover business risks. It is possible to obtain special ‘working from home’ policies.
Shopping around
It may be stating the obvious but it is important to shop around to get the best deal. You should obtain several quotes and always be wary of cheap deals. A personal recommendation may be the best way to decide.
Level of cover
Again it may be stating the obvious but too much cover and your cash flow will suffer, too little and the consequences can be catastrophic. Consider the level of cover you need. With buildings and equipment make sure you are covered for the full replacement cost. If there is to be an excess on any policy make sure that it is set at a sensible level.
How can Taxco help?
Please talk to us if you would like any further advice on insuring your business. Taxco has partnered with Eminent Wealth, who are specialists in their field and will review your insurance and advise you on salient aspects of your insurance policy which you may not know. Fax or email us a copy of your insurance contract, we will review it and advise you – No obligation - It is as easy as that.Contact Us Now.
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Guide is subject to the Terms and Conditions of Use of Taxco Services and their Website.