Does your small business have the right insurance?



The entrepreneurial spirit is alive and well in Bermuda and, as a result, there are many small businesses on the island from electricians, to plumbers, to florists, to technology companies and graphic designers that provide much needed services to the community.


Running a small business can be all consuming and having incorrect or insufficient insurance can be an issue, many may be unaware of the potential risk this could have on their long-term success. Being underinsured can leave a business open to significant costs or even cause bankruptcy in the event of: damage to the business premises, the ensuing loss of business, or a law suit.

We have put together an overview of the more essential types of insurance for small and medium sized enterprises. It is important to discuss your needs with an insurance expert to ensure your business is sufficiently covered. The right level of insurance protection is most important. You also don’t want to be over-insured and spend much-valued capital that could be put to use elsewhere.

 

Property Insurance

Property insurance protects a business from threats to its physical property such as buildings and contents for a slew of perils including but not limited to: fire, lightning, explosion, hurricane, storm, flood, escape of water and riot. Argus insures contents on a ‘new-for-old’ basis and works with companies whose stock levels vary in line with the seasons. Talk to one of our commercial underwriters to see how Argus can tailor coverages to meet your business needs.

 

Business Interruption Insurance

One main insurance product that can provide huge peace of mind is business interruption insurance. This product helps businesses maintain income for the period they have to stop trading and/or covers the cost of extra expenses, should the business be affected by a peril covered under the property insurance policy.

Business interruption insurance provides benefits over a set period of time, known as the indemnity period. Losses that occur after the indemnity period falls to the policy holder, so it is imperative to choose an indemnity period that is sufficient for your business needs. Long term considerations might include such things as the time it will take to demolish a building, gain planning approval and rebuild. In the meantime the short term considerations might include the costs of relocating to set up shop elsewhere, resuming services and keeping your customers.

 

Liability Insurance

Businesses should also consider public liability insurance. This provides financial protection for legal liability to pay for damages as a result of an accidental injury to another person or accidental damage to another person’s property. It is important to remember as a business, you owe a duty of care to all customers visiting your premises even trespassers, also that you remain liable whether insurance is in place or not. At Argus, legal costs and expenses incurred are included in the public liability coverage.

The success and survival of your business is truly important to us, having the right insurance coverage goes a long way to ensuring all of your hard work is not lost in the event of a catastrophe. Talk to one of our insurance advisors at Argus to find the right coverage to protect your business. Call our customer service representatives at 298-0888 or visit us at www.argus.bm.