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Business Contents Insurance – How to Protect your Business Completely

Updated on November 11, 2010

You are in business to make money and part of that process is protecting yourself and your business from being wiped out completely through unforeseen circumstances like theft and natural disasters. You may already have your premises insured but without Business contents insurance you are leaving yourself open to significant losses.

Why Every Business Needs Contents Insurance.

Contents Insurance exists to protect your business and keep it running no matter what happens to your equipment. It will protect against damage, breakage and even theft by repairing or replacing equipment as required. In order for your business to run you are going to need your stock and also your equipment to be in order. The contents of your business that you can protect against such damages are all the moveable tools and equipment that your business needs to run. 

Contents Insurance will cover you for almost anything that is inside your working premises that you can take from place to place. This includes things like computers, laptops and employee cell phones. Unless you are comfortable with the idea of your business going under overnight or being unable to make money because your tools and equipment are damaged then you shouldn’t worry too much about insurance. If this is not the case then you can protect your income stream with this type of Insurance.

Business Contents Insurance
Business Contents Insurance

Replacement as New and Indemnity Insurance

Your Business contents insurance will give you a choice as to how the items are to be replaced. You can either choose a policy which will replace the broken or damaged items with new ones or you can opt for indemnity insurance. This is what a large number of businesses choose as it will deduct the cost of normal damage to the equipment or item when settling a claim. Indemnity insurance can also protect against some losses that are the fault of you or your employees. On top of this you may also elect to purchase a business interruption plan that will cover you for future profit if you missed a delivery deadline because of broken equipment for example.

I Already Have Insurance

Chances are good that you will already have some sort of insurance cover. Despite this there are still many instances that your insurance policy will not cover damages. For example you may be covered for acts of God like an earthquake or flood though there may be some pieces of equipment that may not be covered for example laptops or computers that are taken home by employees. In addition many businesses require specialist tools that are not typically covered by insurance policies and will require an additional specialist commercial insurance quote. Be sure you don’t find out about this after the fact as you may be left to pay not only for your premiums but all the damage too.

Building and Contents Insurance

These two types of insurance are often bundled together so that both your building and what is inside will be covered. If you own your premises then you can get a discounted rate for these two policies when you purchase them together although there are many businesses which rent their office space. If you are a part of the latter group then buying business contents insurance alone will be a much cheaper option for you as it is the responsibility of your landlord to provide you with a suitable location for your business. There are Tenants contents insurance and Landlord contents insurance policies available respectively.

Business Contents Insurance
Business Contents Insurance

What if I Work From Home?

More and more people are working from home based businesses. If this is also the case for you then you need to be particularly careful with your insurance policy. Running a home business doesn’t automatically qualify your equipment to fall under your homes insurance policy. This may even be the case if there is equipment that you use for both your business and personal needs such as your computer for example.

In most cases you can simply extend your home insurance cover to your business though it may be preferable to opt for a separate policy as the amount of cover will differ significantly also. Your home insurance will not cover you for any public liability so if you receive clients and they have an accident on your premises then you could lose your home along with your business.

Going without some form of commercial insurance cover if you are working from home may risk voiding any of your existing policies for your home and may also alter the conditions of your mortgage as your home is not only being used as a dwelling. A registered insurance provider will be able to inform you what the most appropriate type of insurance is for your home business.

How Much Will It Cost?

The price of Commercial Contents Insurance will depend on the amount of equipment and stock that you want covered. If your business only requires a few computers and some basic office furniture to run then it will be relatively cheap. Conversely if you are looking to cover the cost of the entire inventory in your warehouse then it will be considerable more expensive. Prices can start form as little as $50 a month through to several thousand depending on the items insured.

Getting Cheap Business Contents Insurance.

Although insurance is another business expense that you have to pay for many of the insurers will be willing to lower your premiums substantially if you can show that you are securing your equipment appropriately. Evidence of a security system can bring down the price and being registered with an alarm monitoring service has been known to reduce the cost of many other types of insurance also. You may even want to try using a dummy cctv camera in conjunction with real ones if your security budget is limited. Generally speaking, the more that you can show that the likelihood of you actually making a claim is quite minimal the cheaper your insurance will be. Your previous insurance documents can also help to prove this.

Let the Insurers Compete Against Themselves

Insurance salesmen work on a commission basis and as such they are always eager for new business. On top of this there are many insurers out there which offer largely similar offerings You can use this to your advantage by gathering a number of contents insurance comparisons and then pitting them against each other. The salespeople should be willing to give you something more for your money be that a discount or some other bonuses like extra cover or a longer period of cover.

Because you have invested lots of money into establishing your business through your equipment and inventory it only makes sense that you should guard against damages to your assets so you have the chance to turn your resources into a profitable business. So don’t get caught out by an accident, theft or disaster before you have even made a sale or while you are in the middle of one. Having the right commercial insurance is a necessity for your business.


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