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If you are thinking about starting a new business, there are a range of factors to consider to ensure that you provide yourself with the best chances of success. In addition to the product or service that you have decided to offer, you will need to consider a name for your business, its structure and the way in which you will run it. You must also consider the way in which you will market and fund your business and whether you will be able to run your business from your home or will require a separate building.
Once you have considered the answers to these questions, you must consider the way in which you will protect your business. There are a wide range of types of business insurance and the policies that you require will depend upon the type of business that you are running. Insurance will protect your business in the event the loss or damage of physical assets. The amount that you pay for your business insurance will depend upon the insurance provider’s assessment of the chances of damage and the value of any claims that may be made.
If you are planning on buying a business premises, you must take out a suitable insurance policy. The majority of standard contracts cover your premises for fire and floods, explosions, riots, malicious damage, storms and damage caused by vehicles. If you are planning on renting a building, you must ask your landlord about the insurance coverage offered. You will need to ensure that your building is covered for the full rebuilding cost, which is known as reinstatement.
In addition to insuring the building, you must consider purchasing public liability insurance. This is particularly important if the public are able to visit your premises. As premises insurance will only cover the physical building, you will require separate insurance coverage for your stock, contents and machinery. You can choose from replacement as new or indemnity insurance. Many business owners opt for indemnity cover which removes the cost of wear and tear during claim settlement. You can also opt for business interruption insurance which insures you against any losses resulting from, for example, defective machinery.
You may need to purchase specialist insurance to cover your business assets. Specialist insurance includes loss of cash insurance, travel insurance, engineering insurance, credit insurance and goods in transit insurance. When considering specialist insurance, you must keep in mind the type of business that you wish to run. You will certainly not require every type of specialist insurance policy that is available to you.