Underinsurance doesn’t need to be a worry for small businesses. There are numerous ways small businesses can ensure that they have adequate cover in place.
The first is to accurately recognise key risks. Identify everything that is critical for the business to continue to operate. For example, this may include loss of access, and/or loss of power. It is important to work with your insurance broker to establish how much cover you need and what it will cost.
In our experience, the companies that appreciate the value of insurance are unfortunately frequently the ones that have previously incurred a loss or know other business owners who have. Through experience, the owners understand the value of insurance and more importantly, what it takes to recover. Regardless, all business owners should make an informed decision about the level of cover they require.
Understandably many companies are facing challenges at present as a result of Covid-19. That said, it is important for businesses not to cancel or let their insurances lapse if they are reducing costs as a result of the pandemic. When a business is already on it’s knees, a fire or flood could prove to be the final blow. In these challenging times, it has never been more crucial to make sure the business is adequately covered.
We have seen examples where during Covid-19 lockdown businesses dramatically reduced there insurance cover, but when businesses reopened and trading picked up, they forgot to increase their insurance accordingly.
Small businesses that are worried about their insurance cover should contact FD Beck Insurance Brokers to find a solution to make sure they have the adequate insurance protection in force.