In the fourth part of our series about insurance for start-ups, we look at why it is so important to protect your immovable and movable property. Your assets are your company's building blocks.
The term ‘assets’ can cover many things. It includes immovable property, such as the premises, the office and the practice. Then there is movable property, such as furniture, materials, products and appurtenances. Finally, your assets include also the financial elements, such as the contents of your cash register, securities, precious stones, etc.
Insuring all these things is not always as clear-cut as you might think. We are therefore going to tell you about the most common insurance solutions.
Fire insurance covers the damage in case of a fire and often also damage caused by vandalism, storms, water, electrical failure, etc. These additional aspects are included by fire insurers in 90% of cases. Insurers have different insurance packages, with some forms of cover being more extensive than others.
The name says it all. You are protected against the theft of your assets. In 95% of cases, such insurance also covers you for damage perpetrated by the burglars during an attempted robbery. It is important to note that if you have an alarm system or burglar-proof doors installed at your business premises, you often receive a discount on your insurance premium.
Depending on your business, you may be dealing with valuables on a daily basis. By valuables, we mean sums of money, securities, cheques, tax stamps, precious stones, etc. A separate insurance policy for all these values is not usual, in fact it is rather common. Most fire and theft insurance policies include loss or theft of, or damage to valuables, but only up to a certain limited amount.
By taking out a valuables insurance policy, you can therefore avoid unpleasant surprises. There are also several additional options that you can add to this policy:
- valuables that you have with you when are on the road delivering to customers and getting paid;
- valuables in the safe;
- counterfeit money: often on the condition that notes above a certain value be checked for authenticity.
After serious damage, the fire insurance covers the material claims. This payment is intended to cover the reconstruction of buildings, purchase of machinery, etc.
However, this amount does not cover all the financial consequences of the damage. It often takes months for your firm to recover, for you to replace your machinery, recover your turnover, etc.
The purpose of the insurance against indirect consequential loss is to help the insured company get back to the same financial situation after a claim as it would have been if the damage had not occurred.
This insurance only intervenes in specific situations. For example, the interruption (in whole or in part) of your activity must be the result of damage to material covered by the fire insurance.
The following payments are then made:
- Cover for loss of profits;
- Cover for ongoing fixed costs;
- Cover for the extra costs incurred in getting back to where you were as soon as possible.
This insurance can of course be extended even further. In this way, an entrepreneur may also choose to include the following additional options:
- insurance of workers’ pay;
- contractual penalties for delays in deliveries, etc.
Human errors are the main cause of machines breaking down. Such damage is not covered by the manufacturer’s warranty. It is therefore important that you insure against this so that you do not have to suffer any financial loss when you have to replace your machines.
Following on from this, insuring against all electronic risks is also an important issue. In our digital world, telephones, laptops, computers, etc. are indispensable. Thanks to the insurance policy against machines breaking down and all electronic risks, you are covered for all damage, unless specifically excluded.
Do you have specific questions about protecting your assets or would you like to have a quote drawn up for you? Enter your details here and we will contact you as quickly as possible.
You can contact us straight away on +32 (0)3 217 67 53 or send an e-mail to firstname.lastname@example.org
read part 1 here: Insurance for start-ups: liability polic
read part 2 here: Insurance for start-ups: occupational accident insurance
read part 3 here: insurance for start-ups insuring your company cars