Businesses Can’t Afford To Make Cutbacks
Cover before cost or cost before cover is the annual conundrum facing companies according to Kent’s leading independent insurance broker Belmont International, which is urging companies to make sure they have the right policy for their business.
In uncertain economic times it is inevitable that companies may look to make savings on their insurance using internet or off-the-shelf products, which can provide quick, convenient and often seemingly competitively priced policies.
However, adopting a one-size-fits all policy can be short-sighted and leave a business exposed should the worst happen.
David Armstrong, Associate Director with Sevenoaks-based Belmont International, said: “Companies need to take insurance as seriously as any part of their business and should be prepared to talk to a professional who can provide an insurance and risk management audit of their business.
“Getting to know the challenges and needs of any business, its customers and suppliers is the first step towards being able to offer the correct individual cover.”
As an example, Business Interruption insurance, loss of profit or revenue, as a result of a major physical disaster, if not properly arranged, can seriously jeopardise the long term survival of a business. Due consideration needs to be given to suppliers, the effect on customers, availability of specialist equipment, local authority planning and building delays, to name but a few key issues.
In a similar vein, companies often review employee benefit packages and key person protection. All too often benefits are reduced or lost, reducing morale and the ability to attract and retain staff. It is often easy to adapt benefits so that staff and employees remain protected but costs are contained.
David added: “Every company has a variety of risks that can go wrong and differ from business to business. Buying a bog standard policy may cover some eventualities but not all and being exposed can mean the end for a firm. And smaller firms often do not have the time or the knowledge to research their own policies and think buying online will be a convenient solution.
“However, the Internet does not provide the intellectual input to look at a business’s individual needs and tailor a policy accordingly. A broker’s relationship with a client should be an evolving process where regular communication ensures the correct cover is delivered and at the right price.”