Will your business insurance cover you in the event of a riot?

The recent riots, looting and arson attacks have badly affected one in ten retail businesses across England. Approximately 48,404 shops, restaurants pubs and clubs have been directly or indirectly affected over the past four days. Many have been looted, destroyed and some even burnt to the ground.

Nick Starling, director of general insurance and health, at ABI, said:
“Most commercial insurance policies will cover businesses for damage to their premises, including the interruption to their business as a result. Some policies will also cover those businesses which are not damaged, but whose trade is affected by the aftermath. It is important for people to contact their insurer to check what they are covered for and arrange for immediate help. It is too early for us to have an accurate picture of total costs, especially business interruption costs, but insurers are working hard to deal with claims coming in which will give a sense of the level and cost of damage.”

In general, it is not compulsory to purchase business insurance. This SME insurance guide explains the broad range of business insurance policies available, some of which are legally required, and others are purchased to give business owners peace of mind and protection of their livelihood.

Shop Insurance
A shop policy can safeguard commercial shops or retail businesses from a whole range of risks. They can be tailored to each individual to provide cover for specific items such as frozen foods on request. It can include public and employers’ liability insurance to cover staff and customers, along with building stock and contents cover, shop money and business interruptions insurance. This type of policy can give complete assurance that all aspects are covered, including damage caused by rioters and looters.

Office Insurance
Office insurance is a comprehensive policy for office based businesses. An office will be a busy place therefore there will be many risks involved. Office insurance can include public liability and employers’ liability as well as buildings and contents insurance. Some office insurance policies can include computer breakdown cover and personal accident cover for staff on request.

Professional Indemnity Insurance
Professional indemnity, also known as PI is a policy designed to protect those who provide a legal service or professional advice. PI covers a business in the event of a claim made for negligence, error or omission. It can also provide cover for loss of documents and legal expenses. It is not a legal requirement to purchase PI insurance but many trade associations will insist that it is acquired.

Employers Liability Insurance
Businesses that employ staff are legally obliged to purchase a minimum of £5 million employers’ liability insurance (EL) but most insurers provide £10 million as standard. Failure to do so could result in fines of up to £2,500 for every day that it traded without it or a maximum of 14 years imprisonment. EL will protect against claims made by current or past employees that are injured or made ill while working for you.

Public Liability Insurance
Public liability can be a valuable policy to many businesses. Public liability can safeguard businesses from claims/allegations made by clients or members of the public who suffer an injury or damage to their property as a direct result of the business operations.

Goods in Transit
Goods in Transit Insurance will provide cover for tools, materials and stock that are transported in the policyholder’s vehicle to their place of work. The consequences of such items being stolen or damaged whilst in transit can be dire. Goods in transit can ensure that goods are covered in the event of accidental damage or theft occurring during the day.

Courier Insurance
A courier service carries a unique set of risks. Courier insurance is designed to cover valuable packages and parcels for the duration of the journey during the courier delivery. A courier policy can help assure clients that their packages are covered should they become lost or stolen during transit. Courier insurance is often purchased alongside courier van insurance.

GUEST BLOG: Given current developments in the UK, this article was kindly written by Claire Reinholdt, Editor at www.ConstructaQuote.com. Should you have any further business insurance questions please feel free to visit their site. I hope this post will give you an overview on what is available to protect your business as much as possible from an insurance point of view.

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