6. Insurance

An unexpected event – such as a break-in, fire, computer failure, key customer going bankrupt or serious illness of an invaluable member of your team – could destroy your business.

Insurance can cushion the impact of most risks. But if you don’t have the risk insured, the effects can be disastrous.

There are many insurance options to protect your business against the unexpected. Analysing risks and carefully planning your insurance cover can give you the peace of mind that, should the unthinkable happen, the impact on your business could be minimised.

This briefing outlines:

• Insurance you must have by law.
• Protection for you and your business.
• Common insurance requirements.
• How to buy cover effectively.

When disaster strikes

For most businesses it is not a case of if, but when. You will probably make a claim on an insurance policy at some stage, be it for a catastrophic fire or a minor theft.

Your insurance policy will compensate you for financial loss. This can include replacements, repairs and even your lost profits.

But insurance cannot guarantee that your customers will wait while you put your business back on its feet. You need to minimise the business disruption by ensuring quick and full settlement of your claim.

This briefing looks at:

• What to do when you suffer a loss.
• How to make a claim.
• What your insurer will require you to do.
• How to speed up the settlement.
• Why your claim may not be met in full.

All businesses face a wide range of risks every day. Careful planning can either reduce these risks to an acceptable level, or eliminate them completely.

While insuring some of these risks is essential, it should be seen as no more than a back-up to an on-going ‘risk management’ process.

This briefing tells you:

• What risk prevention you are required to carry out by law.
• The most common causes of loss or damage, and how to prevent them.
• How to identify the risks your business faces.
• How taking preventative action will affect your insurance policies.

The cost of bringing or defending a legal action can put serious financial pressure on your business, whether you eventually win the case or not.

You could potentially be sued by an employee, a customer, a supplier or a member of the public. Or you could need legal help to resolve a dispute with a government agency such as Customs and Excise.

This briefing outlines:

• The most common reasons why businesses are sued, including breaches of legislation.
• The most common reasons why businesses sue.
• What you can do to reduce the risks.
• What insurance you can buy to cover the costs of legal actions.