What does a normal Business Insurance Program cover?
In plain language, a Business Insurance Program protects you in two major risk areas:
Assets
Liabilities
Assets
Your physical Assets such as Buildings; Stock; Equipment; Fit-out, in fact any physical property that your business owns (or is responsible for) is covered against 'physical loss or damage’ from most unforeseen events including Fire, water damage, storm, impact, theft and accidental damage.
Your financial Assets such as Cash on hand, money in the bank or even your businesses Income stream can be covered by your Business Insurance program in the following situations:
Physical Cash
Burglary or theft of cash either from the premises or in Transit.
Money
Stolen from your bank account via cyber-attack, fraud or deception.
Your Income stream
Loss of your ongoing future Gross Profit earnings following an interruption to your business from an insured event, such as a major fire.
Liabilities
There are four principal areas of Legal Liability that can be included in your Business Insurance program to cover potential legal claims, arising from both the provision of your Business Products or Services. These 4 covers are:
Public Liability
In case you negligently Injure someone or damage their Property in the course of your business activities.
Products Liability
Again In case you negligently Injure someone or damage their Property however, in this case, it happened as a result of them using your products.
Professional Indemnity
This type of Liability cover is purchased by businesses that provides a professional service for a fee, such a giving advice, doing a design, or other technical professional service. This type of cover is for purely Financial loss of the claimant, and does not necessarily involve any injury or damage to their property.
Management Liability
This covers the Company and its Directors and officers against claims made against them arising out of a ‘Wrongful Act’ in the management of the company itself.
So in contrast to the other three areas of Liability cover (above) Management Liability cover relates to the actual ‘management’ of the business (company) itself, and not the provision of your Products or Services.
Due to the wide range of exposures to which Directors and offices of the company are subject, the cover itself is broken down into several specific areas of cover. Read More about management liability.