INSURANCE is one of those things you don’t really think about until you really need it.
It is an important consideration and purchase for various aspects of our lives; be it car, home and life insurance from a personal perspective or the vast range of business insurance products should you be a business owner. It is there to protect us, and our valuable assets, if something were to go wrong.
With National Insurance Awareness Day coming up on June 28, now is a timely reminder to make sure that your commercial insurance cover is fit for purpose and reflects the scale and any potential changes within your business.
Despite the ongoing political turmoil around Brexit, not to mention the lack of a local Executive, the Northern Ireland economy appears to be going from strength to strength. The number of VAT and/or PAYE businesses operating here in 2018 is estimated to have risen by 3.4 per cent since 2017 to 74,060, according to latest figures from the Northern Ireland Statistics and Research Agency.
Quite rightly, the first few years of any new business’ existence is focused on survival and growth. Business owners will be preoccupied and consumed by revenue, profit, and the many and varied operational aspects required to run a successful business, but one area that can easily get overlooked is insurance and maintaining an appropriate level of cover.
Despite its serious consequences - leading to policies not operating as intended, delivering less indemnity than needed following a loss, and potentially jeopardising an organisation’s ability to recover - underinsurance remains surprisingly common, with estimates that over 40 per cent of businesses do not have adequate cover in place.
Some general tips on how to best protect your business include:
• Talking with your insurer. To check the current status of your cover, speak to your insurer and identify whether there are any gaps in your policy.
• Communicating any changes. Don’t automatically renew your policy without reviewing whether you have sufficient cover in place. If your business is growing, the likelihood is that the cost of getting back on your feet should something happen will grow too. Have you hired new staff? Have you added a new product or service? It is important to make your insurer aware of any material changes as these could require an alteration to your policy.
• Reminding employees of safe workplace practices. Injuries to your workforce can slow down your small business’s production and can prove very costly. While commercial insurance is designed to help protect your business and your employees, avoiding accidents altogether is ideal and setting aside time to remind your employees about workplace safety is necessary to keep it top of mind.
• Arranging regular valuations. Use regular and professional valuation services to help ensure the sums ensured are correctly assessed.
• Being aware of emerging risks. Consider how the risks to your business change, including areas such as cyber risk or data protection. Cyber security isn’t just an issue for large businesses - small businesses are at risk too. Business continuity planning will help you identify and manage present and future business risks.
Overall, put reviewing your insurance cover on your list and don’t let it slip. Take action, talk to your broker and ask for advice – it may result in lower premiums and, overall, you will get that peace of mind that you and your business is protected, with your insurance in all in order.
::Diane Johnston is head of SME at Autoline Insurance Group (www.autoline.co.uk/business)
