Effective risk management is the key to a successful business. Protecting your commercial property is critical, be it your building or equipment or losses caused by interruption of business. Decision makers often defer buying insurance for less frequent risks like fire, failing to reflect on the significant loss one can have. Also since such risks are not commonplace, the premiums are also significantly low. Having a robust office insurance requires identification of all assets and the risks associated with them. An Air conditioner needs to be covered differently from an expensive UPS or EPABX. Your laptops need a different protection to office computers as it is often taken out of the office. You also need to determine the value on which you should insure each type of asset coupled with a comprehensive cover plan to ensure every insurable risk is well covered. Edify Consultants can guide you systematically to find the best solutions for you.
Fire & Natural Calamities Cover
While fire policies have inbuilt covers for many risks like flood, malicious damages etc., one still need the coverage for earthquakes or terrorism to be added. Depending on the type of business, a fire policy should be extended to cover associated losses which may result from the main peril.
Burglary and Theft insurance
Burglary does not cover the risk of a missing asset taken away from office by an outsider without evident housebreaking. Unless specifically bought a rioting loot is not covered. An Employee theft cannot be covered by theft insurance. Leave the nuances to professionals to buy the right cover.
Servers, Laptops and IT Equipment
Assets like servers, laptops, routers and storage devices require specialised insurance. These assets can be insured for short circuit, voltage fluctuations and breakdowns apart from fire and burglary. Laptops can be covered for the risk of theft or physical damage occurring outside the office.
Building, Leasehold and Furniture
Leased office interiors and furniture damage is a tenant’s risk when the rental provides only for normal wear and tear.Insuring buildings and contents at acquisition cost often leads to an under insurance. One may miss insuring the cables and internal roads, exposing them to uninsured losses.
A fire or flood damage to your office will also disrupt business continuity leading to revenue losses over months. While your business stalls, fixed expenses like rent, loan interest and salaries do not. A business interruption cover protects your fixed costs to keep your business running.
Fidelity and Money Cover
Detecting an employee fraud is difficult and losses are large. Losses from fraudulent wire transfers or bill payments can be recovered through a fidelity cover. Money insurance is taken to recover loss of “monies” stolen from office or looted from your employees outside the office.