Business contents insurance policies are more and more frequently subscribed by business of all sizes to protect the company’s material belongings against loss or theft. However, the coverage can differ greatly from one provider or one policy to another, and there are several known limitations to look into before selecting a business insurance policy. Also, business owners should review possible ways to keep the price down for this service.
What is business contents insurance?
Contents insurance is a specific kind of insurance policy meant to cover the loss or theft of material goods owned by the policyholder. It’s very useful for businesses, but one should be wary about the limitations of these insurances.
An insurance to protect company-owned equipment...
A business contents insurance policy protects the policyholder against loss, theft or damage suffered by company-owned equipment. All equipment mentioned in the insurance policy and registered with the insurer will be replaced, or compensation will be paid to the policyholder in case the said equipment is damaged or stolen or lost. Although it is not compulsory to have one, this kind of insurance is very popular with businesses as almost all companies have valuable equipment in their offices, especially expensive computer equipment these days.
Insurance policies can be adapted to meet the specific needs of such industries as:
- the retail industry;
- offices and surgeries;
- home businesses;
- real estate businesses.
... with limitations
Not all insurance policies cover the same range of perils, and each of them has its own limitations. Extra care should be applied when reviewing the following services:
- is employer’s liability insurance included?
- some really expensive items, worth over £1,000, will not be covered unless they have a specific insurance on top of the general business contents insurance;
- some insurances enforce “wear and tear” policies covering replacement costs, some are restricted to “new-for-old” policies refunding only actual cash value taking depreciation into account.
How much does it cost?
Here’s what we know about business contents insurance prices - and how to keep them down.
Business contents insurance prices
As all businesses have their own specific needs, and as insurance companies have complex pricing patterns, it’s quite complicated to know about business contents insurance prices. Rather than contacting all insurance companies one after the other, it’s therefore much simpler to refer to only one website, such as this one, to get many quotes from just one centralized quote request.
How to keep the costs down
But before requesting a quote for this kind of insurance policies, businesses can review a checklist of possible improvements they can make, which will save them a great deal of money on the price of their insurance policy:
- securing the business, by fitting a burglar alarm or adding security lighting;
- some specific alarms like NACOSS alarms can earn businesses as much as 7.5% on their insurance policy prices;
- seek for an insurance company offering no claims discounts, meaning that if you don’t claim anything, premium prices will come down;
- ask for even more quotes from websites such as this one.