Work out how much it will cost to replace the business assets before applying for insurance. Businesses risk financial disaster through under insurance. Make sure assets are insured for replacement value at current prices.

If the replacement cost is unknown, unclear or too hard to work out, the business may need the services of a qualified valuer.

Business owners often fail to consider worst-case scenarios at business start up.

The purpose of insurance is to protect the business against disasters so the focus can be on the future of the business. Find a balance between protecting the business against risks and the cost of insurance premiums.