What is business contents insurance?
Owning your own business can be extremely satisfying – you get to shape and build your own vision and when you see those signs of success it makes all the hard work worthwhile. It is vital that you protect all the assets that you rely on to keep your business trading. The ideal way to do this is with business contents insurance.
You don’t have to take out business contents insurance by law, but it is wise if your business uses expensive equipment or equipment that you simply rely on every day. Whether you work from home or have a business premises, you need to insure what is on the inside.
What does business contents insurance cover?
If your business was affected by a fire, flood or burglary, the cost of replacing your contents is likely to be considerable. If you don’t have adequate business contents cover, you would have to cover the cost yourself. In the worst case, you may even have to temporarily cease trading, or even close your business permanently.
The items covered by a business contents insurance policy will vary, depending on the nature of your business. If you own a shop or restaurant, your stock and fittings will be your primary concern. If you run your business from an office, your computer equipment will be essential to your trade.
What types of business contents insurance are there?
Contents insurance includes things like chairs and desks and desktop computers. Laptops can be covered by portable equipment insurance.
In a shop, items for sale are covered by stock cover. Specialist tools come under tool cover. Fixtures and fittings are covered by buildings insurance.
You can choose from new for old cover, or indemnity insurance.
In a nutshell, new for old cover replaces content that has been damaged or stolen with a brand new replacement.
Indemnity insurance will deduct the cost of wear and tear so that you’re returned to the same position as you were prior to the loss.
A business contents insurance policy will generally cover your goods against damage caused by:
- Malicious damage
- Civil commotion