Secure Your Business’s Future: Top Five Insurance Tips for Long-lasting Protection
25 July 2023
“In the ever-evolving business landscape, protecting your company from potential risks is crucial for sustainable growth and peace of mind. Insurance plays a vital role in safeguarding your business assets and reputation” – Simeon Chapman, Group Director.
That said, navigating the complex world of insurance can be challenging. That’s why we’ve compiled these top five tips to help ensure that you have the right insurance coverage for your business:
Tip 1 – Sums Insured:
One of the most significant concerns in the insurance industry is under insurance. To avoid being caught off guard during a claim, it’s crucial to have the right sums insured. Make sure your buildings, machinery, plant, and contents are insured based on their reinstatement value, rather than their market value. The slight increase in premiums to have the correct values insured can save you from significant financial losses in the event of a claim.
Tip 2 – Cyber Threats:
With the rise of cybercrime, businesses holding sensitive customer data or processing online payments must be prepared for the evolving threat. Consider investing in cyber insurance to protect your company from potential data breaches and financial losses. Being proactive in this area is essential to safeguarding both your finances and your reputation.
Tip 3 – Business Interruption:
In the face of a substantial loss like a fire or flood, having adequate business interruption coverage is vital. The standard 12-month indemnity period might not be enough for your business to fully recover. Studies show that an 18 to 24-month indemnity period is more appropriate to ensure a successful recovery. Investing in extended coverage can provide the financial support needed to retain customers and rebuild your business.
Tip 4 – Directors & Officers Insurance:
Directors and officers face increasing statutory requirements and potential legal challenges. Protecting those in leadership roles is essential, and Directors & Officers Insurance (now known as management liability policy) provides crucial legal protection, advice, and support. Having this coverage in place can be a lifeline during unforeseen situations.
Tip 5 – Fair Presentation:
When seeking insurance coverage, it’s essential to make a “fair presentation” of the risk to your insurer, disclosing all relevant information, facts, and circumstances. As your business grows and evolves, remember to keep your insurance brokers and insurers informed of any changes to ensure continued protection.
Hazelton Mountford understand the complexities of insurance and how it impacts your business. Their team of experienced professionals is available to guide members through the process, ensuring you have the right coverage tailored to your specific needs. Don’t leave your business unprotected—contact the team today to discuss your insurance requirements and secure a stable future for your company.