Proportionate cover.
THE PRINCIPLE
Insure what would seriously damage the business.
Accept smaller risks yourself.
WHY
Insuring everything is expensive and most small claims cost more in premium than they recover.
WHAT TO INSURE
Anything that could end the business Anything you are required to insure Anything a customer or landlord requires
THAT LAST POINT
Larger customers frequently require evidence of cover before engaging you.
Establish what they require before you need it.
WHAT TO CONSIDER ACCEPTING
Small equipment Minor losses Anything where the premium approaches the potential loss
WHAT TO ASK
If this happened tomorrow, could I absorb it?
If no, insure it.
WHAT AFFECTS THE DECISION
Your cash position Whether the loss would be one event or recurring Whether you have alternatives
WHAT TO REVIEW
Annually, and when the business changes.
WHAT NOT TO DO
Insure nothing because it seems expensive Insure everything without assessing
