Business Insurance Specialist Dishes Out Some Advice for Businesses this Festive Season

Businesses have had a hard time for much of 2009, having suffered at the hands of the recession and faced trials and tribulation all year round. But with Christmas on the way there are a number of things that they might face, some of which were outlined in a recent press release from AXA, but others might not be so obvious.

This is why Business Insurance Specialists Premierline Direct have issued a press release outlining how businesses can protect themselves in the winter season.

The company is focusing its attentions on stocks, with earnings and assets fluctuating and potentially affecting the insurance policy that a business might have agreed on with an insurance provider.

So whilst businesses might think that they are safe from a number of situations this Christmas, such as theft or other unforeseen circumstances, they might not have taken increased earnings and assets into account. When a business is covered by business insurance, it will cover areas such as business assets, legal liabilities and earnings so if any of these areas change once the policy has been purchased then the business might not be covered.

Research carried out by PremierLine Direct shows that just under half of SMEs surveyed are unsure as to whether they are still covered when their stock value temporarily increases. This could cause a problem if a turbulent festive season means a claim needs to be made at a later date.

“When running a busy shop during the Christmas period, the last thing owners need to worry about is whether they are fully covered by their insurance policy,” said Chris Little of PremierLine Direct, “Our research shows that 30 per cent of small businesses don’t fully understand their insurance policy, leaving themselves wide open to potentially crippling losses.”

He urged small business owners to check the small print of their policies, making sure that they are still meeting the terms and conditions outlined by the policy so that they will not be left damaged by a potential problem manifesting itself. As with any form of insurance, making sure that it fully protects relevant areas is paramount and this could make all the difference during a time when crime is generally on the rise.

Source: PremierLine Direct Press Release Oct 2009

Not Doing Enough, say AXA in Revealing Study

In the modern world it is not uncommon to hear of injuries in the workplace or accidents in the office, but we usually hear about it in relation to employees taking legal action against their employers but negligence. This is why it is a requirement for businesses to have employee liability insurance.

Recently, leading insurer AXA released results of a study into employers’ liability insurance, revealing 15% of businesses go without it, which accounts to over half a million people that are uninsured in the workplace.

However, it should be pointed out that these half a million actually only account for 5% of the total as most businesses without liability cover are sole traders.

In the same breath, the study also revealed the shocking statistic that only 34% of businesses realised that they have a legal obligation to protect their employers with liability insurance.

It seems that businesses are following the model being championed by many households. In light of recent economic tribulations, many families have been cutting costs by getting rid of insurance (something that is encouraged against) and it is something businesses have been doing to save money as well.

During the period from 2008 to 2009, around 15% of businesses have considered reducing costs by cutting back in the area of insurance, with 5% admitting to have already done so. This, AXA warns, is creating a false economy as the money will not be saved if something is to go wrong.

However, there are other areas where businesses are unclear on the rules. Only 11% of employers surveyed were aware of the obligation to gain insurance if a van or vehicle is available to employees to use.

“These statistics should be a wake up call to all businesses and the insurance industry alike,” says Doug  Barnett of AXA, “With the economy as precariously positioned as it is at the moment, the last thing needed is more businesses needlessly going to the wall because they are not properly insured.

“We have taken the findings of this research very seriously and have produced materials that can be used by AXA to help get our message across to business owners and management that insurance is an absolutely vital component of any successful business.”

So it might be time for business owners to read up on their obligations and recommendations for business insurances.

Source: AXA Press Release Oct 2009

Direct Line Cites 2008 Figures in Latest Warnings

The floods of 2009 have seen many leading insurers appearing out of the word works to urge people to make sure they are covered for home insurance. Car Insurance experts have also advised motorists to drive carefully unless they want to see damage caused to their vehicle and a rise in their car insurance premiums.

But Business Insurance experts have also been adding their own views to the flood issue, citing statistics that point to the damage faced by SMEs in 2008 as a result of flooding.

They show that as many as 112,000 small businesses were in some way affected by floods that occurred last year, which accounts for 11% of the total. The research was carried out by Opinium Research, who carried it out on behalf of insurance provider Direct Line in January 2009.

Perhaps even more worrying was the figures that highlighted a third of businesses that were not only affected by flooding, but were facing even bigger problems due to a lack of adequate cover.

In many cases the problems came about from flood waters entering premises, with close to half of SMEs affected by such situations. However, flooding can affect businesses in a number of ways, such as suppliers or employees being flooded, causing a knock on effect. Around 31% of businesses were left with no ability to operate as a result of suppliers becoming flooded in 2008.

“Flooding poses an increasing threat to all businesses and householders, as last year’s storms and severe weather have demonstrated,” said Kate Syred of Direct Line. She adds that businesses should do all that they can to ensure they are properly protected by Business Insurance.

“It is vital that small business owners and sole traders take steps to protect themselves against unforeseen incidents, like flooding wherever possible, particularly at a time when finances are already stretched.

“By having protection in place, it could not only reimburse businesses for losses as a result of flooding, but it can also provide much needed peace of mind during such turbulent times.”

Businesses are clearly facing a large bill as a result of not being adequately protected, so with the 2009 floods still causing havoc in Cumbria and Scotland, perhaps it is time to take the necessary steps.

Source: Direct Line Press Release July 2009

AXA Urged Business Owners to be Prepared this Festive Season

There are many things to consider at Christmas and once we have completed the Christmas shopping we might also start to tick off things such as ‘putting up the decorations’ or ‘booking train tickets home’.

But for business owners, perhaps another thing that they should be considering is crime over the festive season.

It wouldn’t be the obvious thing to consider during a time when families are coming together and the world generally feels happy and has a good time, but crime statistics from insurance company AXA show are causing them great concern for SMEs over the winter period.

Therefore they are urging the business owners to be vigilant over the Christmas season as a range of factors come together to lead to desperation amongst thieves, arsonists and vandals, with the current economic crisis cited as the leading cause.

They say that small businesses could be particularly affected over the Christmas period, particularly retailers that might have more stock and cash on the premises than during other periods of the year.

If you are a small business owner in Halifax, then you could be particularly at risk, with the Yorkshire town coming number one in the top 20 places affected by business crime in the first half of 2009. It was followed by Manchester, Bristol, Croydon and the South East of London.

Using their own Business Crime Index, which analyses the level of crimes based on business insurance claims, they were able to determine that the average cost of all claims was around £3,806, with forcible theft accounting for £4,500 and arson at £17,200.

“Crime against business is a serious issue and this year we are concerned that the continuing recession could prompt a rise around the Christmas period,” said Doug Barnett of AXA. He also highlights the need for businesses to work with the community as well as ensuring they have adequate insurance.

“We would urge all businesses to work with local communities and police to protect themselves as well as taking sensible precautions, not least making sure they are properly insured should the worst happen.

“With 36,200 businesses [according to BDO Stoy Hayward Industry Watch Summer 2009] predicted to fail in 2009, we can’t stress enough the importance of insurance to avoid becoming part of that depressing statistic.”

Source: AXA Press Release