“80% of businesses fail within 12 months of making a major insurance claim”.
Most businesses will have the standard insurance covers in place such as Liability, Property, Transit and Motor Fleet. However, it is the quality of advice regarding the optional extras to these standard covers that is often crucial in determining whether a business survives a major claim. Business Interruption or Loss of Profits cover is a particularly complex area that requires a fuller understanding of your business.
Some questions you need to ask yourself are:-
- What is the availability of and how quickly could you establish alternative premises?
- What is the lead time on replacement of your key plant and machinery?
- What would be the effect of one of your key suppliers being put out of action due to an insured event?
- What sort of PR budget would you require during an interruption to maintain the ear and loyalty of your key customers?
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- Are there circumstances where you may need to recall a product or that its simple failure to perform could lead to a major claim?
- Your Memorandum and Articles of Association will probably indemnify the directors from personal liability but could the company afford to pay unlimited legal costs?
- Machinery and vehicles are replaceable but your key people may not be – have you identified and insured accordingly?
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At RHG we don’t just understand insurance, we understand business. We will highlight these and other considerations that might be relevant to your business so that you can make informed decisions.
Contact us now at our offices in Stevenage, Hertfordshire to find out how we can enhance your business protection.