A RECENT survey has revealed that a third of small businesses in the North- East do not have business insurance.

Adequate business insurance can protect you against damage to, or the loss of, physical assets. There are many types of insurance and it can be difficult establishing exactly which ones are vital, advisable and which are unnecessary.

Business Link provides an informative guide on the different types of general and commercial insurance available and a free online interactive tool to help assess which one you need. The guide is businesslink.gov.uk/northeast If you own your business premises, taking out a suitable insurance policy will ensure you are covered for damage from a variety of causes such as fire, storms and floods.

However it is important that you check the policy details carefully, as these can vary depending on the level of cover offered.

If you rent your premises, insurance is usually the landlord’s responsibility, but this is not always the case, so it is necessary to confirm this.

It is important to remember that insurance policies do not cover general wear and tear, electrical or mechanical breakdown or any gradual deterioration specified in the policy.

Premises insurance only covers the physical building, therefore contents insurance is also required which covers items including stock and machinery.

Contents cover can either replace items as new or provide indemnity cover, which deducts the cost of any wear or tear when settling a claim.

Dependent on the type of business you run it may also be prudent to take out other forms of specialist insurance to cover areas including loss of cash, damage in transit and travel insurance.

To decide on an appropriate level of cover, it is a good idea to seek professional advice from a regulated insurance company or broker. If you choose to deal directly with an insurer you should check that they are a member of the Association of British Insurers.

■ Business Link’s substantial team of expert brokers operate across the region in local access points and on a mobile basis. For further information about Business Link visit businesslink.

gov.uk/northeast or call 0845-600-9006.