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Wednesday, May 29, 2024

Does business insurance cover personal use? – things to know

When it comes to running a business, or simply getting a business off the ground for that matter, having the necessary insurance in place is essential for a whole variety of reasons, which is sadly one of the main reasons why so many small businesses fail before they even get off of the ground. Starting a business can be a daunting task, but if you are driven, ambitious, and aren’t afraid to work hard, and even to potentially fail, starting your own business could potentially be one of the most exciting and rewarding experiences of your entire life, and if done right, it could change your life for the better. People often ask ‘does business insurance cover personal use’? as there is a great deal of uncertainty about this, and about business insurance in general. To help make things hopefully a little more clear, here’s a look at whether exactly business insurance covers personal use, as well as several other things you should know about business insurance before you go ahead and make a purchase. 

Does business insurance cover personal use? – It does, although there are things to consider. Take car insurance for example. If your business requires you to use your car for work purposes, business car insurance must be paid. This means that extra cover is offered to a regular car insurance policy, and although the price will be a little higher, it is not worth skipping it and sticking with a regular policy, as you run the risk of not receiving a payout if you were to make a claim. The insurers will want to know why you use your car for work, how many miles you do on average, how long you drive at a time, and so on. 

What business insurance do you need? – Business insurance is a very broad term, but as you can see from the above, there are numerous types of business insurance, including those relating to travel. This means that you could require a number of different policies in order to ensure that you’re covered, although how much will depend on the nature of your business. For example, if you run a business which employees a number of people, many of whom are required to operate heavy machinery, your policies will probably be higher than a small office-based business employing five people. 

Different prices can be obtained – A lot of people make the mistake of simply calling the first business insurer that they can find and then going with the first quote that they receive, but this is not recommended at all. Business insurance providers are very competitive, so it is worth ringing as many as possible, in order to find yourself the best possible deals. It may be a pain in the backside, but taking the time to call as many providers as possible is recommended as you could save several hundred pounds, which is certainly not to be sniffed at. What’s more, if you tell a company a price you were quoted, and how much, many providers will pledge to match, or even beat, the quote received. 

Overhead insurance is recommended – Remember, as it is your business that you are insuring, you are obviously the person in charge, so if you were to fall ill, or to require time away from the company for personal reasons, you need compensation in place to cover potential losses. These payments are designed to cover utility payments, rent, and other overhead costs that need paying, even if you’re unable to work or manage the finances. 

Business interruption insurance is also recommended – Business interruption insurance is also very strongly recommended as it is designed to cover basic business costs during downtime after manmade disasters, or natural disasters such as flooding, for example. What’s more, you can even be reimbursed for loss of profits during periods when you were unable to trade.

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