Business, Insurance

Insuring Against Business Contracts Going Bad

Insuring Against Business Contracts Going Bad

You may have a truly successful business with nothing ever going wrong, but that doesn’t mean that disaster can’t strike at any time. The risk of a catastrophe may seem relatively low but on the off chance that it does happen it’s best to be insured, just to be on the safe side.

There are various types of insurance that you can take out as a business owner. They could all play a part in helping to stabilize a company and will allow you to plan ahead, just in case there is a disaster around the corner.

One type of policy that you may consider taking out is cargo insurance. Cargo or freight insurance is important for anyone who will be transporting goods overseas. Whenever you are shipping goods there will always be an element of risk involved. Shipments could be damaged or even lost in transit and that will leave you out of pocket as you will face the costs of repairing or replacing the goods. Many would believe that the actual carrier of the goods is liable for any damage or lost items but this is not the case, you are responsible and that’s why taking out cargo insurance is imperative according to Onesure Insurance.

Liability insurance is another sort of cover that are common with businesses. This sort of insurance helps to protect the business against many known and sometimes unknown risks. It will help to safeguard the business against claims of injury or damage to someone else’s property from a third-party.

This sort of cover is not compulsory but it is essential if there is a chance of injury to customers for example. If a customer happened to slip on a wet floor, the insurance would pay the costs. You’d be covered.

It’s important that if you are taking out this type of insurance that you inform the insurer what type of business you are running. This will help to determine which policy suits you best. However, if your business is in or does work in the public sector, you will usually be required to take out cover of £5 million minimum.

If your business is small, you may think that you don’t really need cover. Something as simple as a customer tripping on an uneven surface could set you back thousands of pounds if you aren’t insured.

Another sort of insurance type that a business may take out is interruption insurance. This sort of policy covers a business against a loss of takings because they have been unable to trade due to an unexpected interruption. This could be something such as a fire or a flood or even some sort of theft that has impacted the business.

Usually, this sort of policy will cover your lost income for up to 12 months. Buying you necessary breathing space whilst your company gets back on track.

Disasters and catastrophes can happen at any time. People may think they won’t happen to their business and even if the risk is low, they can still happen. Many business owners even underestimate the costs and disruption caused by an incident such as a flood, a loss of cargo or injury to someone. It’s important to be prepared and to plan ahead. That way, no matter what happens, you know you’re covered.

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