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Administration-es
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Running a business you must take out proper insurance. Which and how many you need varies from one business to another.
Each type of insurance may have different names at different insurance companies. Thus, the term "commercial insurance" covers a wide range of insurance products. At some insurance companies this is an all-risk insurance and you do not need additional insurance. At others, it only covers some of the risks you should cover against.
So as you see, commercial insurance varies from one insurance company to another contrary to e.g. a household furniture insurance that typically covers the same, no matter which insurance company you take it out with.
Thus, you must investigate the coverage of each individual insurance. This is often hard work. You also need to be on top of your insurance requirement.
Industrial injury insurance
A proprietor of a personally owned business is covered against industrial injuries by taking out a personal accident insurance. Note: An Industrial injury insurance covering employees does not cover the proprietor.
Professional indemnity insurance
Personal liability insurance is part of normal household furniture insurance. Not necessarily so for professional insurance.
There is a profound distinction between two types of liability insurance: The personal liability insurance and the professional indemnity insurance.
The personal liability insurance covers accidents you may cause carrying out work. If you visit a customer and accidentally knock down a porcelain figure or spill coffee on a photocopier.
A professional indemnity insurance covers damages you may cause as an effect of your business. Accountants and lawyers, e.g., are legally obliged to take out such insurance to cover a customer´s loss caused by misleading advice, but also other professions are liable to pay damages:
A mechanic may damage a car engine by wrong calibration and an IT consultant may cause a great loss if s/he messes up a customer´s computer system.
Insurance against loss by fire, theft and water damage
These are the basic elements of insurance that all businessmen and women should take out. In many ways this corresponds to your household furniture insurance, but includes business property coverage, which is not normally covered by household furniture insurance.
Consequential loss insurance
While insurance against loss by fire, theft and water damage covers the direct damage, consequential loss insurance covers the profit loss resulting from long term business interruption caused by fire, etc.
Project insurance
Some craftsmen take out separate insurance providing coverage dedicated to one individual large-scale construction project.
Transport insurance
Haulage contractors, shipping agents and others in the transport industry as well as companies with large freight needs should take out proper insurance. Cargo in transit risks theft, damage, traffic accident, loss of vessel, etc.
Insurance consultancy
The insurance industry is tangled and unknown territory to most entrepreneurs. Therefore, it would be wise to seek assistance. This can be done in several ways:
You can consult an insurance company and ask for their assistance. They offer good advice in terms of identifying the risk coverage you need, but you can not be sure that the agent offers you the cheapest solution. S/he is obviously bound by the solutions offered by the specific insurance company.
Insurance consultancies specialised in business consulting can help you find the best possible coverage at the lowest cost. Some consultancies are definitely serious, but, like within other trades, also here you risk running into some who are not.
Another solution is to ask your accountant. Only a few accountants are insurance experts, however, most are fairly experienced in the field.
Rose
- Læs mere på: www.forsikringsoplysningen.dk
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