The range of available business insurance policies is as varied as the needs of individual companies. Property insurance, liability insurance or business interruption insurance are common examples that every entrepreneur should consider.
Business liability insurance
Business liability insurance is practically a basic requirement for any enterprise. Because risks vary greatly from industry to industry, it is important to conduct an in-depth analysis before taking out a business liability insurance policy. The following risks may be covered:
- Business premises risk: Damage for which one may be liable as the owner or tenant of business premises. If, for example, a customer trips up and injures himself because of a faulty step, the insurance policy makes a payment to cover the damage suffered by the customer.
- Operational risk: Damage that may be caused by operating procedures. If, for example, a fitter damages kitchen equipment when installing a new cooker, the insurer covers the cost of the damage.
- Product risk: Damage caused by faults in the construction or development of products are covered. For example, a company produces a component for a rechargeable battery that overheats and can lead to fires.
In addition, enterprises can also insure themselves against various special risks by taking out business liability insurance.
Those who practice a free profession, such as for example physicians, pharmacists, architects or fiduciaries, can take out a voluntary business liability insurance policy. This covers special risks associated with the exercise of the respective profession.
In the case of property insurance, a distinction is made between building insurance and insurance for moveable property. An entrepreneur is obliged to take out a building insurance policy only if his business is operated in his own building premises.
With a property insurance policy, everything contained in the building, such as for example machinery, tools and computers, can be insured against risks such as natural disasters, fire, water or burglary.
Machinery and IT insurance
- Machinery insurance or general insurance for technical equipment covers damage that may be caused through own or third-party fault to machinery, apparatus, instruments and other technical plants. Insurance solutions also exist for computer systems.
Business interruption insurance
- Direct costs and loss of earnings as the financial consequences of a business interruption can be insured. Business interruption insurance can be taken out for practically all risks. Such policies are worthwhile above all for companies that do not have alternative production facilities.
Legal expenses insurance
- Legal expenses insurance provides protection against legal costs in the event of a dispute. This may entail disputes with customers, employees, suppliers and other parties. Legal expenses insurance covers the cost of court proceedings or of defending against unjustified claims.
Insurance benefits may be individually configured in accordance with operating risks and risk tolerances. Disputes with public authorities cannot be insured, however, for example disputes with the tax office, disputes arising out of unfair competition or in conjunction with intellectual property rights.