The importance of insurance when adapting your business during lockdown

25th February 2021

Broker advice on adapting your business during lockdown.

The importance of insurance when adapting your business during lockdown

While the pandemic has been a significant challenge for all businesses, many local firms have responded fantastically well in the face of adversity to ensure they continue to thrive and survive.

Indeed the lockdown has caused many firms to change and adapt their business model to cope with new ways of working and dealing with customers.  Many firms have moved to online delivery, are now working from home and in some cases, are using existing equipment to manufacture new products. In the face of constant change the response of many local firms has been outstanding.

However business owners should always remain aware that new risks may be faced with these new ways of working.  Recent research by insurer AVIVA showed that one in four business have not updated their insurance cover for over four years.  Even before the pandemic started last year, only 50 of smes had adequate levels of cover for their business.  The research also revealed that over two-thirds of SMEs (69) diversified their business in response to the Covid-19 restrictions with 46 increasing their online operation, 35 offering a new product or service and 27 changing their product or service offering.

As firms continue to innovate, it is critical to adapt their insurance policies and ensure they have coverage in place to reflect the new ways of working.  For example applying automatic cover extensions for people working from home and temporarily unoccupied premises or where taxi drivers have switched their business model away from carrying passengers to delivering.  
Businesses who have not changed could still face increased, or different risks.

Jamie Harvey at Director at chartered broker IFM Insurance said: “Many local firms have responded brilliantly to lockdown by being innovative in the face of real adversity.  However, it is imperative to ensure their insurance cover reflects any changes they make.  A broker can help review their insurance arrangements often and ensure that they are fit for purpose, particularly where a business has introduced new ways of working”.

You might also be interested in

ProAktive by name, proactive by nature

Tue 13th April 2021

REGIONAL commercial insurance and risk management consultants, ProAktive, have launched a new environmental consultancy to further strengthen their existing risk management division.

Four in Ten UK Exporters Reporting Decreased Sales in Q1 2021

Tue 13th April 2021

The British Chambers of Commerce’s Trade Confidence Outlook for Q1, released today, has revealed the stark issues facing UK exporters in the first months of this year.

BCC Says Modest Growth in GDP Offers Some Hope for the Future

Tue 13th April 2021

Commenting on GDP figures for February 2021 published today by the ONS, BCC Head of Economics, Suren Thiru, said:

Invest in our people, our planet and our regional business communities

Mon 12th April 2021

Watch back our webinar recording of One Year On: Shaping the national recovery effort event, in partnership with Devon & Plymouth Chamber.