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After a fire, flood, burglary, earthquake or other such event, there is obvious destruction, loss or damage to buildings, plant and stock. This physical loss or damage is commonly insured under a Material Damage policy.
The purpose of Material Damage insurance is to reinstate the asset lost or damaged, as it was if no fire or other insured event had occurred. The insured may elect not to reinstate and can negotiate a financial settlement, which would reflect a depreciated reinstatement value. However, the insurer is not liable under the policy unless the property is insured property and the insurer has accepted a valid claim for the damage.
Material Damage Insurance is the modern form of the fire & perils insurance. It is superior because of its broadness of coverage, meaning that if it is not excluded then it is covered. The policy also provides accidental type coverage and is adaptable to extend and limit coverage as required.
Product liability insurance is useful in sectors like retail and technology, where it protects you when someone makes a claim for injury or damage caused by a product you’re involved with. You may be the manufacturer, the supplier or you could operate only the retail end, wherever you are in the life cycle, you could still be faced with a claim. Product liability cover, as part of your public liability insurance, safeguards you against legal and defence costs and settlements.
Any business involved in the design, production or supply of products to customers should have product liability insurance. You might be just one part of the supply chain, but you could still be held liable for defects that lead to injury or damage. Whether it’s a kitchen appliance malfunctioning and starting a fire or a faulty toy harming a child. The cost of compensation can be damaging for a small business.
Buildings insurance will cover everything which could be considered a permanent part of a property. This includes doors, windows and anything which is necessary to make a property secure. It also covers bathroom fixtures such as showers and toilets, and fitted kitchen appliances which would not be transferable to a new property.
Most policies will also protect outbuildings within the properties’ grounds such as a garage or shed. This is standard practice, but there are exceptions. Structures such as swimming pools are not typically covered, and although you can usually arrange with your insurer for them to be included, this will add to the cost of your insurance.
A common point of confusion is the extent to which a building’s insurance policy will protect your possessions in the event of damage. While some might assume that by insuring the building you’ve made sure that everything in it will also be covered, this is not the case. For personal items, freestanding appliances and decorative items, like carpets and curtains, contents insurance is usually required to provide cover. Fixtures and fittings, however, will tend to be covered by your buildings insurance. It is always worth checking the details of your policy to confirm the extent of your cover.
It’s often a surprise to business owners just how many incidents could result in a claim, and it doesn’t even have to happen on your property. Putting public liability insurance in place takes away a whole host of unknowns, so you can get on with running your business. Product liability insurance works as part of your public liability cover to give you an extra layer of protection.
If a customer or member of the public makes a claim against your business, public liability insurance covers the legal fees and compensation payments you’d need to pay. Even if you’re not at fault, we’ll cover all your costs – we can’t take away the headache of a claim, but we can make sure it doesn’t come out of your pocket.
While public liability insurance isn’t a legal requirement, you may need it to be able to deal with your client contracts, and some companies are obliged by their supervisory or membership body to take out certain levels of business insurance. Many small businesses take out public liability, but if you’re not sure if you need it, either as a legal requirement, contractually or as best practice, click here to find out more. Or, give us a call and chat to one of our friendly and experienced advisors who’ll keep you right.