Business insurance: the basics

Here are the key actions you need to take when considering your business' insurance needs and buying policies:

• Appoint your insurance broker or insurance adviser - preferably one who is experienced in your particular trade. Make sure you get full details of how they are paid and who to contact.
• Carry out an assessment of hazards and risk exposures in your business. See risk management.
• Review your standards of loss control - how secure are your premises?
• Review your business continuity arrangements - how will your business carry on in the event of, for example, a fire at your premises or loss of a key member of staff?
• Decide on the level of cover you would like against each risk you have identified.
• Collect and review information on your planned insurance needs to present to insurers.
• Compile insurance underwriting data - for example, the values of insured equipment.
• Compare the quotes and conditions you have received via your broker.
• Buy insurance and agree service level agreements with the insurance company.
• Agree on reporting procedures for losses, accidents and claims.
• Keep in touch with the broker and insurer and regularly review the arrangement, especially if circumstances change - for example, if your business expands.
• Keep insurance policies and any information related to claims in a safe place.