INSURANCE
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Despite rising costs, never skimp on your insurances. Make a point of recording when they are due and ensure you check that they have been paid. Don’t forget to note down the policy details and keep them offsite. Apart from the obvious insurances – premises, stock, vehicles, public and employer’s liability – also look at: ● Directors and officers insurance that covers negligence when running a firm; ● Business interruption insurance that pays to keep a business alive following a catastrophe (unlike premises and contents, which just pays to replace the physical); ● Key man insurance that provides a sum of money following the death of a key person – co-owner or shareholder – to the surviving business partner(s) to keep the business afloat or to buy out the estate of the deceased; ● Critical illness cover that pays out following the diagnosis of defined serious illness that is terminal or life threatening – especially important for small businesses or sole traders; ● Permanent health insurance that pays an income where the insured can no longer work. While it might be a little expensive for someone who drives (compared to an office worker) it is still vital for the sole trader.