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With crime rates in most western countries climbing, it makes good
sense to take out theft insurance to protect your business from loss. As you would expect theft insurance for your business is much the
same as theft insurance for your house. And like domestic theft insurance the
actual amount you will pay in premiums will be determined by your risk
profile. This is influenced by such factors as: - Your history - have you been robbed before, do you have a
record of burglaries?
- Location - do you live in a high risk location?
- Business type - is it particularly prone to theft?
A proper theft policy will cover your possessions for up to a certain
amount, either as stated by you, or categorised by the insurance company. There
are two main types of cover: - Old-for-New - Items are replaced at their current market
value
- Indemnity Cover - The insurance company will taken into account
general depreciation
Be careful to check which type of cover the insurance company is
proposing. Obviously the former is the better option, but it can cost you
more. Many theft insurance policies have particular clauses - excluding
certain items and including certain conditions. There may be requirements
regarding security measures for example. Consider these carefully as they can
be expensive. On the other hand if you have already installed such measures do
not be shy about mentioning them. Before you start shopping around for a policy, work out how much your
possessions are worth. This is vital to ensure that you do not buy too much or
too little cover. If you are getting an Old-for-New policy, make sure to value your
contents at their replacement value, not at their actual value. New equipment
may cost more than you expect. When choosing a policy, examine any limitations and upper limit
pay-outs before purchasing the insurance. It's also worth checking whether
computer equipment, bicycles and special valuables have to be insured
separately, and whether you are covered for accidental damage. Once you've chosen a policy, check it frequently and update it if
necessary. Also, check your excess limitation, especially for money, valuables
and single articles, and try to negotiate a discount on the strength of any of
these. Always read the small print and documentation. If you don't, you are
leaving yourself open to the insurer's opt-out clauses.
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