A number of statistics are quoted about the number of businesses that fail after suffering a major incident such as a fire. Whether that figure is 60%, 70% or 80%, it is still a very high number but there are some simple steps to help ensure that your business does not become one of them. Many businesses spend a lot of time making sure they have the right cover and sums insured for their machinery and stock, but forget about their loss of profits or revenue insurance.
Things to consider:
- The right cover. Should it be loss of profit or loss of revenue? You might only need cover for additional expenses.
- The right sum insured. Your current gross revenue or gross profit is a starting point, but does it need to be adjusted to take account of growth you are expecting in the coming months and years?
- Indemnity Period. This is the length of time the insurer will pay for loss of profits or revenue following damage. 12 months is the norm but will that be enough to rebuild, replace machinery AND win back enough customers to get back to your pre-loss turnover level?
- Reliance on a large customer or supplier. If one of these had a major fire and stopped buying from or supplying to you, would the loss of profit be fully insured?
- Failure of Electricity or Telecoms. We are all, almost without exception, totally reliant on a constant electricity supply and a broadband connection. Does your insurance cover your losses following failure of the supply?
If you want to make sure your insurance protection is correct, call us on 01527 306 041, fill in your details HERE, or send an email to enquiries@apinsurance.co.uk