What is asset protection insurance?
Traditional business property insurance, also called Material Damage insures the buildings, equipment, stock and possessions of your business from physical threats such as fire, flood, theft or malicious damage. Most people are familiar with this type of policy since they are similar to those you would take out on your own house, car and home contents. This insurance covers the cost of repairing or replacing your lost or damaged stock or assets.
Another form of business insurance is ‘business interruption’ or ‘business continuity’ cover, which protects you against financial losses should you have to temporarily halt your operations for some reason. Whether your loss is due to physical damage to your property, or other circumstances outside of your control such as a power outage. This type of insurance protects your income and is often used in conjunction with property insurance.
We may be able to refer you to another insurer for other types of specialised insurance which can help you to protect your company’s physical and financial assets. These address more insidious threats such as fraud or crime by one of your employees; theft or infringement of intellectual property; and breaches of your network security. You may also be able to take out insurance which covers your goods or equipment in transit.
Why do I need asset protection insurance?
Every business has assets. Depending on the kind of business you have, these assets may represent a substantial investment. They could include offices, factories, manufacturing equipment, technology and vehicles. If you operate a manufacturing or retail business you may also have a high value of stock to protect. Property insurance helps you to meet the costs of repair or replacement, and get your operations back up and running as soon as possible, should something happen to your premises, merchandise or equipment.
Even service businesses, with no stock and fewer physical assets, may have financial reserves, intellectual property or technology which is essential to their operations. How would it affect your business if you lost access to your computers or communications network? What would it cost you, in reparations and reputation.
If you have business or equipment loans you may be required to take out property insurance as a condition of your financing.
How much will my property insurance cost?
The cost of your property insurance premiums may depend upon many factors, including
- The type and value of your assets
- The amount of cover you want to take out
- The amount of excess you decide upon
- The location and security of your property
- Whether your assets are together or spread across several locations
- Whether you want to insure assets which are static or in transit
- The type and likelihood of the threats you want to insure against
You can take Commercial Property insurance as part of our Business insurance, brought to you in partnership with Allianz. You may combine it with a range of other types of business cover in a single policy.