Why maintaining your insurance cover is vital to your recovery - by Gary Fletcher
At Insurance Advisernet, we appreciate that many SMEs are struggling to pay the bills during the COVID-19 restrictions. Maintaining your insurance cover, however, is one strategy that can actually help your recovery, resulting in a much brighter future as restrictions slowly begin to ease.
Why is maintaining your insurance cover important?
The right type of insurance cover means that your business can cope with any potential emergencies that might occur, whether accidents, criminal activity or natural disasters. Many business owners, however, may be second guessing their current policies. They may be wondering whether their policies are still relevant, given the imposed restrictions wrought by the ongoing COVID-19 pandemic.
This is a very astute question, which demands an honest answer. This answer is that some of your insurance policies may not be as relevant now as they were prior to COVID-19. Subsequently, this means that your insurance policies need to be reviewed and possibly, revised to suit your new operating conditions. While you might be tempted to cancel your policies at this time, just imagine the intense financial pressure you may face if disaster strikes without the protection of insurance.
Two insurance policies that are vital for your business
Whilst your insurance policies are essential for protecting your business, there are two key policies that some SME owners might be questioning during the pandemic. These are Public Liability and Property insurances.
These two policies are still essential, because even though you might not be trading at the moment, a pipe could still burst and flood neighbouring buildings or a fire could devastate your leased warehouse, showroom, restaurant or retail outlet. If any of the events occur, even if you are not trading at the moment, and your policy has lapsed, the financial consequences can be dramatic. Now is not the time to maximise your exposure to these risks.
How are SMEs responding to the pandemic?
At Insurance Advisernet, we have had very few instances where an SME has actually cancelled their insurance policies. We have also seen a gradual increase in enquiries, from a low around Easter at the height of the pandemic, returning to pre-pandemic levels as restrictions ease. These figures tell us that whilst initially, some SMEs reacted to their lost revenues by cancelling their policies, the vast majority have continued to weather the storm and maintained their policies. This is despite suffering significantly reduced revenues.
Cancelling or reducing your insurance cover can be a big risk at any time, let alone in today’s pandemic environment. This is why we encourage all our clients to contact their insurance adviser and have a frank conversation about their circumstances. Together we can review your policies, in light of your operational changes, and ensure that your business continues to operate safely with the right type of insurance cover.
Contacting your insurance adviser for assistance
Your insurance adviser is an expert on the type of insurances you need for your business. They are committed to helping you lessen the impacts of the pandemic on your business by sharing relevant industry knowledge and revealing any policy changes that may affect your business. They can also assist with reviewing and updating your cover and with processing any claims.
For help reviewing your business’s changing insurance needs during the pandemic, talk to an insurance specialist today and find your local adviser. Contact Gary Fletcher today.