While the law determines that certain forms of insurance cover are mandatory, there are other non-compulsory types of insurance that are worth considering seriously.
- Business interruption
This insures you against loss of income and additional expenses incurred as a result of your business operation being disrupted. If your premises were damaged so you could no longer provide care for children, this cover would provide for loss of fee income.
- Key person insurance
This helps protect your business in the event of the death or disability of a key employee. Benefits can include protection against a fall in profits, salary for a temporary manager and costs for recruitment and retraining.
- Directors and officers insurance
If your nursery operates as a limited company then you will be aware that the company directors and officers have specific duties and responsibilities for which they can be held responsible. This insurance provides cover for compensation and legal costs if they are found to have inadvertently acted outside their terms of reference.
- Money (cash loss) insurance
This covers the loss or theft of money from the business, both while the nursery is open as well as when money is in transit, say, to the bank).
- Glass and sign cover
It's worth checking your premises cover for these two points, as it is not always included automatically.
When buying any form of insurance it is advisable to ask your broker to obtain quotes from a range of insurance providers and to compare levels of cover and excess.
Advice on selecting an insurance broker can be found at www.biba.org.uk (the British Insurance Brokers' Association) and www.iib-uk.com (Institute of Insurance Brokers).
