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Mapping a business's insurance needs

A structured way to work out what your company actually needs to insure, before someone tries to sell you a package.

Business insurance is usually bought in pieces, as each requirement appears — a landlord asks for one thing, a tender asks for another. The result is overlap in some places and gaps in others. It is worth mapping properly once.

Four questions

  1. What do we own that would hurt to lose? Premises, stock, machinery, vehicles, data.
  2. Who could we harm? Customers, visitors, employees, neighbours, the buyers of our product.
  3. What would stop us trading? Fire, a cyber incident, a key machine failing, a supplier collapsing.
  4. What are we contractually required to hold? Tenders, leases, client agreements, financing terms.

Mapping the answers to cover

ExposureUsual cover
Premises, stock, equipmentCommercial property / business package
Harm to customers and visitorsThird-party liability
Employee accidentsEmployer liability + group personal accident
Product causing harmProduct liability
VehiclesFleet, or individual motor policies
Goods in transitMarine cargo
Projects under constructionContractors / erection all risk
Unpaid receivablesTrade credit
Director decisionsDirectors and officers
Systems and dataCyber
The most common gap we find is between what a business does today and what its policies describe. Companies change faster than their insurance documents do.

How often to revisit

Annually at renewal, and immediately after any material change: a new location, a new activity, a significant new contract, a jump in headcount or stock value.