Insurance - What Do I Need to Know?

By smei

Posted 23/02/16

Many business owners may consider insurance to be a minefield and can often be put off by the numerous factors they need to be aware of to ensure their business is adequately covered. We are often asked questions such as “what insurance cover do I need?”, “how much cover do I need?”, and “are there any exclusions or specific requirements on my policy?”. There are also lots of other important questions to consider when searching for the correct insurance policy and also when you come to renew it.

The points below present some of the factors to consider:

  • Fish and chip insurance policies usually require all ductwork systems and grease traps to be professionally cleaned – on an annual basis as a minimum – by a third party and the Fire Safety certificate to be displayed clearly in order for your insurance policy to be valid.
  • Fire claims and compensation costs can be significant, so insurers tend to pay particular attention to this aspect of the policy. Failure to comply with legal requirements and protect the building’s occupants could result in a prosecution for you, and may affect the validity of your insurance cover.
  • Business interruption is a key area to consider. What would you do if you have a fire or are affected by the storms? How would you manage if your business was out of action for a period of time? Business interruption can usually be included in the policy package, so make sure you confirm your needs when purchasing your policy.
  • Public liability insurance is not a legal requirement, but it will make any claims brought against you by your customers, easier to manage. All it may take is a customer to slip on the floor that you’ve freshly mopped and you could find yourself with a claim against you.
  • Seasonal trade increases – if you trade in a busy holiday resort you will know you need to increase your stocks at certain times of the year, and many insurance policies will take this into consideration – but you must check with your broker and make sure it’s covered in your particular policy.
  • The average increase is usually 25% above your normal stock, which is often more than adequate, but may you need it to be higher than this – again check with your broker.
  • Changes to your shop – if you change your premises to include a sit-down area, or any other changes, then ensure your notify your broker as this may affect your cover.
  • Documentation – do keep all your certificates, maintenance agreements, and policy documents in a safe place as it will make the process of making a claim so much easier for you.

When it comes to taking out an insurance policy the key is to always check and question what you do not understand, don’t be afraid to ask. Failure to comply with a condition that is stipulated in your policy could result in a claim not being paid.

 

Posted 23/02/16

Author: smei

Want more? Subscribe to our bulletin

Feefo Reviews
92%

of our customers would recommend our service based on Feefo

Provided by Feefo
Customer Testimonials
Fullers-Action-810x810.jpg
Fullers Bakery has used smei for the last 3 years for business premises insurance. The changeover from our previous insurers was seamless and efficient with queries and special requirements all handled very professionally.

George Fuller, Fullers Bakery

Read more
Log your renewal
Need a reminder?

Fancy a friendly reminder?

If you want one less thing to worry about, simply log your renewal and we’ll remind you nearer the time.

Log your renewal
Latest News
What’s the secret to sustaining a popular high street independent bakery for 41 years?

Anne Lev, founder and owner of Dafna’s Cheesecake Factory in Liverpool took the time to give us the low down.

Read Article
A shining example of an independent furniture store

Live Like the Boy is a shining example of an independent store helping to revitalise its local high street, bringing colour and individuality to the…

Read Article
What does it take to run a busy hairdressing salon?

We met with Iain McIntosh from Salon M who helped us delve into the world of running a busy hairdressers. A thriving hair salon and a high street…

Read Article
The 10 Most Haunted Hotels in Britain 2018

The UK is home to many old and unusual hotels, so it’s no wonder some of them are reported to be haunted. Here are some of the most haunted hotels in…

Read Article
Quotes from well-known and specialist insurers, including