February is the season of love.
And whilst you might not usually associate insurance with romance (no heart-shaped policy documents just yet), comprehensive cover is one of the most meaningful ways to show your business the attention it deserves.
From financial loss and operational disruption to potential lawsuits, employee injury claims, fire, theft and so much more – having the right protection in place can be the difference between a tragic end or a happily ever after.
Trouble is, according to the Chartered Institute of Loss Adjusters, as many as 40% of business interruption policies are underinsured, with the average shortfall running to a whopping 45%. Suggesting that not everyone is prioritising cover as much as they should (or that they’re not calculating the sum insured correctly!), leaving many companies dangerously exposed.
With no two businesses or their risks ever the same, here the Rigby Financial team share insight into why commercial insurance should never be overlooked, and why a tailored approach is so essential.
Why do you need commercial insurance?
Whether you run a small startup, a growing brand, or a multi-national company, you’ve invested time, passion, and hard work into your business. But, just like relationships, business journeys aren’t always plain sailing. Things happen, such as:
- Equipment breaks down right before a big order
- A customer is injured on your premises and makes a claim
- A cyber attack disrupts your operations
- A fire, flood, or theft causes serious damage
Having the right level of insurance in place helps to ensure that one bad day doesn’t spell disaster.
Consequences of not having business insurance
Business insurance is something you hope never to need to use. Which is probably why so many companies fall into the trap of underinsuring – but that’s where the danger lies.
The potential fallout from not investing in comprehensive cover, can include:
– Loss of income
Without insurance, unexpected events (claims, accidents, damage) can stop you trading and cut off both immediate and ongoing revenue.
– Unrecoverable equipment costs
Lost, stolen, or damaged equipment must be replaced from your own funds, which can seriously threaten cash flow.
– Large legal expenses
Injury or negligence claims can lead to significant legal fees and compensation costs, even if you successfully defend the case.
– Legal and regulatory risks
Certain covers, like employers’ liability insurance, are mandatory in the UK. Not having them can result in heavy fines and legal trouble.
– Overall business risk
The right insurance acts as a financial safety net, helping your business recover faster and protecting its long-term future when the unexpected happens.
- Read more on the consequences of not having business insurance.
How to choose the right cover
When it comes to insurance needs, every business is different.
Finding the right commercial insurance isn’t about choosing a one-size-fits-all policy – it’s about understanding the unique risks and realities of your business.
Key factors to consider include your industry, day-to-day operations, size and turnover, number of employees, contractual obligations, and the specific assets you rely on, from premises and equipment to digital systems and data.
You should also think about potential liabilities, supply chain dependencies, and how long your business could realistically operate if disruption occurred.
Regularly reviewing your cover as your business grows or changes is also essential, as gaps in protection can emerge over time.
Working with an experienced adviser can help ensure your policy is tailored, comprehensive, and fully aligned with both your current needs and your future ambitions.
- Find out more about how to choose the right level of business insurance cover.
Find your perfect match
So this Valentine’s, put down the overpriced roses (they wilt).
Step away from the chocolates (they melt).
And instead, get in touch with the team to review your commercial insurance and make sure your business benefits from personalised, long lasting protection. Because the best love story is a business that’s prepared, protected, and ready for whatever comes next…
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