In today’s financial climate, many businesses have found themselves in the unfortunate position of having to cut costs in order to survive. Deciding which areas of the business are disposable is an incredibly difficult task. However, one outgoing which should never be cut back is buildings insurance.
Manchester-based insurance experts say businesses which are looking to reducing their insurance premiums and therefore their cover are literally playing with fire.
Without adequate cover in place, your business could lose significantly more capital in the event of a catastrophic incident such as a fire or flood than it would if you were to continue paying your monthly premiums. It could even threaten the survival of your business as many an uninsured business has gone under following flood or fire.
Geoff Williams, director of Cherry and Griffiths, said: “Dealing with property insurance claims are tricky at the best of times but can bring further misery to business owners if the cover originally agreed doesn’t adequately compensate when disaster strikes.
You can almost guarantee that the weeks or months following a decision to reduce your buildings insurance cover will be the time when the unthinkable happens and you’re left to pick up the pieces of a destroyed business.
Geoff added: “Cutting back on buildings insurance should never be regarded as a viable option to save money in business. Buildings insurance provides you with the security and peace of mind that if the worst happened, you would be reimbursed for your losses. A business which chooses to take away this safety net is a business which is constantly looking over its’ shoulder.”
The financial cost of a fire or water damage can be far-reaching. There is course the salvaging and repair costs to initially consider but also the implications for the business in terms of lost profit, stock and productivity.
A professional loss assessor will maximise the chances of comprehensive settlement but their task will be impossible if the cover agreed between the business and the insurer is considerably lower than required. It also doesn’t take account of the full range of risks exposed to business premises.
Whether as a business you’re economising or not, it’s always wise to seek professional advice when taking out insurance to ensure your business is fully protected against every eventuality.