Running a small business offers a new challenge every day. Even when everything goes smoothly, there’s always a threat of some accident hanging over your head. So, how do you deal with it? Getting contents insurance definitely should be a part of the solution as nothing reduces the risks quite like a good policy.
Contents insurance protects the main tools of your business, which means it effectively covers your livelihood. Note that this is a sub-type of home insurance, so it mostly covers devices stored within your home but used for business. These policies vary quite a bit, so you’ll have to consider several important factors to determine which is best for you specifically. I advise doing a comprehensive research of the available options first. Then, compare them from the business benefits perspective. Don’t forget to account for future growth.
Choosing the Right Contents Insurance Cover
Regular contents insurance comes in three types:
- Unlimited sum insured – covers all tools you want to protect.
- Sum insured – covers contents amounting to a specified sum.
- Bedroom rated – the same as ‘sum insured’ but calculated based on the number of bedrooms.
Please, don’t mix up business contents insurance with business equipment insurance. The latter covers tools and other equipment used by your business. The former can include printers, fax machines, and some other electronic appliances that are involved in the business process, but don’t qualify as ‘equipment’.
If you use both types of appliances and they are equally important, I urge you to consider buying two policies. Also, check what your current home/business insurance covers.
Note that many business contents insurance policies have a maximum cover for certain items. Therefore, you might need to insure most expensive tools separately.
Put Quality Before Price
‘How much is contents insurance?’ is a reasonable question to ask. The answer will vary based on the coverage and some other factors. In 2015, the average policy cost for the UK was £124 a year. Business contents insurance policies, in particular, can cost as little as £15 a month.
You can find out the rates and determine how much money exactly you can insure your business-related contents for by using specialized calculators. The majority of insurance companies websites offer those. You can also get a quote from a provider by requesting it online. The majority of trustworthy insurance companies offer free, no-obligation quotes on their websites.
While the price of this policy might seem a bit high for a small business, you mustn’t forget its benefits. I suggest you calculate your possible losses should something happen to your business gadgets. Now think whether insurance is worth it.
Estimate Risks to Choose What to Cover For
The cost of a business contents insurance policy will be affected not only by what it protects but also from what. It’s your chance to reduce the premiums, as you can reasonably assess your risks. I suggest studying statistics on accidents, burglaries, fires, etc. in your neighbourhood.
Next, take into account what measures you have in place to reduce those risks, such as alarms, security systems, etc. Also, take into account the policies you have for protecting your entire home from these eventualities and payouts you will receive should one of them happen.
Look Out for Discounts
There are insurance carriers that offer discounts on business contents insurance policies when they tie in with their other policies. These deals allow you to get truly comprehensive coverage for a reasonable price. However, they can be quite tricky, so it’s best to review the terms with an expert.
Bear in mind that the majority of people underestimate the value of their contents, so they end up underinsured. Personally, I believe that if you buy insurance, you shouldn’t settle for anything but the best. So, consider consulting an expert to work out the most efficient cover for your personal circumstances.