1. Compulsory insurance includes: -

Employers' liability
Motor insurance

2. Optional types of insurance to consider are: -

Building & contents
Business interruption
Computers & machinery
Credit insurance
Critical illness
Employee litigation
Homeworkers
Income protection
Key man insurance
Legal insurance
Personal liability
Product liability
Professional indemnity
Public liability

3. Take time to think clearly about the amount of cover you need. Insure stock for its replacement cost price, without any addition for profit. Plant and machinery should normally be insured on a ‘replacement as new’ basis.

4. If you have too little cover, an insurance company can reduce any claim by the percent to which you are under-insured.

5. Most insurance policies require you to pay an excess or deductible, covering the first part of any loss. Make sure the excess on your policy is appropriate. You can often negotiate a reduction in premiums by agreeing to a higher excess.

6. If most of your claims fall beneath the excess threshold, consider switching to a policy with lower excess but it will cost you more. On the other hand you may want to avoid making claims just above the excess, if they would mean increased premiums in subsequent years.

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Do’s & Don’ts:

Do:

Exhibit a certificate of employers’ liability insurance at each place of business and keep it for 40 years, starting with certificates issued in 1999.

Check the insurer is authorised with the Financial Services Authority by calling the FSA’s enquiry line (0845 606 1234) or visit the website (www.fsa.gov.uk). Most are members of the Association of British Insurers Tel: 0207 600 3333.

Shop around for advice and quotes.

Use a broker to help you find the best product to suit your requirements, their services are usually free.

Don't:

Neglect security. Consult your insurance company for advise on the most appropriate measures.

Forget to carry our regular risk assessments.

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Information supplied by Business Insight Central Library, Chamberlain Square, Birmingham. B3 3HQ Tel: 0121 303 4531 Email: business.library@birmingham.gov.uk www. birmingham.gov.uk/businessinsight www.bestforbusiness.com

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