New Year celebrations (and resolutions) are well over, now that we are into our second month of the year. It is amazing how time is flying by!
Last Friday (Jan. 31st) Britain formally left the EU. Now comes the tough trade negotiations. British Prime Minister, Boris Johnson hopes to have them sorted by December 31st 2020 but many think this will be a tall order, so we will have to wait and see how these negotiations play out and the risks/benefits associated with them.
Speaking of risks, one thing that you must not let slip through your fingers is renewing your insurance policy - that dreadful annual ‘must do’ item on our list. With premiums getting bigger and bigger each year it’s easy to skimp on the details of the policy or cut corners on what you decide to insure against. However, it is no harm to look at the policy in detail before paying the premium. Simple things like the correct name and address of your business need to be checked, along with what exactly you need to insure. It’s not cheap being insured but it is not a good idea to under insure either just to save a little on the premium.
Insurance cover, particularly with employer liability and public liability, premiums are on the rise, due to the lack of predictability and the inconsistency in court awards. In some industries, such as the child care sector, many insurance companies will not offer cover, or will force excessive premiums because of the potential high risk, causing many crèches to shut down.
With vandalism and theft always lurking around the corner you need to make sure your stock/contents are insured and the proper value is given. The figure you insured your stock for ten years ago may not be the same value today, especially if you expanded your business and/or increased your stock. The cost of replacing your premises needs to be updated as well should the worst happen.
You will need to decide on the excess you are willing to pay if a claim is to be made. Make sure that what you decide is what you could live with, if a claim had to be made on your policy at the worst possible time for your cash flow. You should also look at your public liability insurance details.
You can break down your insurance cover for three different types of eventuality:
- Property insurance
- Public liability (including customers and staff)
- Financial risks – for example staff theft/fraud, or against major customers unexpectedly going into liquidation
Most insurers will offer policies specifically designed to meet the requirements of your type of business, be it a taxi, farm, distributor, building firm etc.
It is better to overestimate the level of cover you need rather than underestimate. By doing that you will have peace of mind knowing that whatever happens, your dealership and your employees will be able to continue on in business.
I hope you have a trouble and claim free year.