Protection for the premises

Without your business premises you do not have a business. With this in mind you may wish to give some thought to:

• fire damage to the building;

• water damage due to burst pipes;

• flooding due to inclement weather;

• damage to the premises caused by vandalism;

• breakage of glass windows.

Any of the above may affect your business. In some cases your business may have to close down for some time and this might lead to a severe loss of earnings. Cafe insurance may provide protection against the above and more.

Protection for the interior

Just as important as the exterior of your business premises is the interior. This typically includes the fittings and fixtures within your business and the stock, but will vary among the different business insurance providers, so always check the small print. You may wish to consider how the following might affect your business;

• damage or destruction of the fittings and fixtures inside your cafe. For instance fire or water damage to the flooring, tables and chairs, along with the kitchen equipment;

• third party claims that may arise from members of the public being injured or even killed while on your premises as the result of your fault. Legal costs may be astronomical and in some cases might close your business for good;

• third party claims from staff members who suffer injury due to a fault of your premises.

Cafe insurance may provide protection for the above, depending on the policy taken out. When considering a business insurance policy, do bear in mind that cover typically differs between insurance providers and the level of protection taken.

Robert Cholmondeley, director of the Corporate Insurance division of Preston based financial advisory group Taylor Patterson, reveals many businesses are looking to trim their insurance costs to help them tackle the recession.

But he warns that many are in danger of leaving their businesses under-insured or exposed as they cut back on what they believe are unessential insurance costs.

“There are savings to be made for businesses when it comes to corporate insurance premiums, but it is important such decisions are properly researched and well thought out,” says Robert.

He added: “We are finding that the insurance market remains competitive at the moment despite fears of predicted hardening rates. However, saving premiums is not as black and white as some people might think.

“For example, having adequate health and safety and risk management policies can both assist in producing favourable premiums terms and ensuring that the expected premium increases over the next year or two are minimised.

“Under-insuring is an easy trap to fall into. There may be short-term financial gains but the long- term cost could be devastating if the wrong decision is made.

“It is important to get proper advice before making any changes, and never cancel a policy without having evaluated the consequences and additional risks faced by your business without the cover being in force.”