Property and Liability Insurance – Critical Covers Required by Small and Mid-Sized Businesses

Own a small or mid-sized business? If so, consider the effort you put in terms of capital and other expenses to build your business. Small and mid-sized businesses do not have sufficient financial support as they invest whatever they have in working capital, purchase of raw materials, and other things. They need to protect these investments. For this, they need insurance according to the type of their business and the risks that may rise while running the business.

Critical covers required
Small and mid-sized businesses require a comprehensive policy that covers most of their business risks. The policy should include property and liability insurance to cover most of the risks. Let us discuss about them in detail.

Property insurance
Property insurance protects the property of the business and its physical assets. These include buildings, machinery and inventory - all that are connected with the business. It is important to insure all those physical assets that are at risk of being lost or damaged.

These include, the building where the business is housed regardless of ownership (own or leased), equipment, furniture, machinery, data processing units such as computers and accessories, furnaces, important documents, books; non-physical assets such as intellectual property rights, reputation, etc.

• Property insurance, in general, covers the risk of fire, disasters such as lightning, damage to property because of displacement to different location, the risk of damage to property by storms, mob violence, damage caused by vehicle and aircraft.
• A special form of property insurance covers the risks that are not mentioned in property insurance papers.

Liability insurance
Liability insurance covers the risk of claim because of

• Damage to others' property
• Bodily injury caused to anyone (other than employees) because of business operation
• Personal injury including libel and slander
• Advertisement that misleads audience and is false

Things to consider while purchasing property and liability insurance

• Properly assesses risks: While considering the amount of insurance cover you are going to purchase, make a realistic estimate of the risks, your business is likely to face and see to it that all the risks are covered under your property and general liability insurance. That is, the insurance cover should be comprehensive with respect to the risks to your business.
• Expose security measures to get discounts: While purchasing property and liability insurance let the insurer know the security measures you have taken in your business such as security cameras, fire and gas alarms and the like. Further, give the details of building renovation, including electric working, plumbing, major repairs particularly in the ceiling cooling and heating systems to get discounts.
• Purchase required coverage only: Every business faces risks of one sort or the other. Calculate the amount of risk your business faces. While purchasing insurance for your business, make sure that it is not more than you need. In that case, you will have to bear extra cost for no benefit. Likewise, see to it that the amount of insurance you purchase is not too low. In such a case, your insurance will not be sufficient to protect you. You should, therefore make sure that your insurance covers risks of all sorts that your business faces.
• Deductibles: A deductible is an amount paid by the policy holder to the insurer. Your insurance premium gets cheaper to the extent of the amount of the deductible you are ready to pay. Deductibles are thus, part of the premium. Thus, deductibles help you pay lower premium.
• Approach a reliable brokerage firm: Once decided to purchase property and liability insurance, approach reliable brokerage firm that you can rely on. They help you assess your business risks, buy a suitable policy and also get discounts.

Property and liability insurance is important to your small or mid-sized business because of the always-prevailing risks to your business. It is sensible to purchase insurance to protect business from these risks.

Keystone.ie is Ireland’s premier supplier of public liability insurance and business insurance solutions to Irish industry. We offer a broad range of builders insurance, construction insurance, and business liability insurance products. Keystone Insurance Limited offers great value to contractors and general business customers.