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Don't underestimate your insurance obligations

Don’t get caught out when it comes to insuring your business and assets.

Business insurance offers protection against a wide range of circumstances, such as property damage, stock theft, and legal claims. This is something every business owner has to deal with as part of their day-to-day running operations. It’s not exciting but it is important.

This issue might have already been on your mind due to the impact of COVID-19. Many insurers claim that their cover does not include pandemic-related scenarios.

But even before the virus, multiple concerns around insurance have always been at the back of business owners’ minds.

According to a survey run by MoneySuperMarket, 16% of those asked were not aware that they were obliged to declare building renovations to their insurer. This was in relation to their homes, but the idea readily extends to offices and other places of work, which is even more relevant now, as the UK’s returning workforce expect measures to be implemented to protect their safety in a post-pandemic world.

Another 16% of the 2,000 people asked did not realise that changing their jobs or job titles could potentially void their insurance policy.

If you’re thinking of selling your business, making sure your insurance is up to date might seem like a task that can take a back seat, as it will be the new potential owner’s concern. This is not a smart mindset to have. If someone is acquiring your company, proving that you have remained up to date on all financial and legal obligations will serve your best interests.

These are five areas concerned with insurance that may slip through the cracks:

1. Changed job/job titles, but the insurer has not been informed

2. Failure to inform your insurer of any renovations, no matter how small, to your business address.

3. Leaving a door or window unlocked on your property.

4. Any updates or changes to your digital technology

5. Any of your property has been involved in some form of accident or experienced damage and you have failed to inform your insurer.

Always remember to communicate minor and major changes with your insurer. The more understanding you have of your financial and legal obligations, the more protection you will receive.

Sasha Roberts

About the author

Sasha Roberts is a copywriter for Dynamis, writing for their Franchises & Businesses For Sale section.