Why reviewing your insurance cover annually is important

Hassle-free insurance in under a minute

“Life is inherently risky. There is only one big risk you should avoid at all costs, and that is the risk of doing nothing.” Denis Waitley 

As the cost-of-living crisis looms, high street businesses across the UK are feeling the pinch. With the rise in energy costs and food prices, petrol and diesel hit record highs, it has never been more important for the independent business owner to review and compare their current insurance policy making sure they have the best protection for their business and customers.

With every single penny counting, time-strapped small business owners are assessing their outgoings, sticking with their current providers and in some cases looking to save money by reducing cover limits, leaving themselves at potential risk of financial loss and having to cover the shortfall themselves.

“What's the similarity between a raincoat and insurance? It's that you're never really covered as much as you think”

It is important to remember when buying business insurance, you are looking to protect your business and reduce the risk of financial loss. You're paying for certainty - a fixed premium in exchange for knowing a potentially costly claim would be covered by your insurers.

Understanding what is covered and what is not is vital, every insurance policy will specify inclusions and exclusions or events that will or will not be covered determining the terms of coverage.

If the worst happens though, does “not reviewing and comparing” your current policy or buying the cheapest option provide the best protection for your business?

Taking time to undertake a policy review, prior to the policy live or renewal date, will establish if your existing cover accurately meets your needs, and it doesn’t take as long as you think!

Taking a minute to consider and compare your current insurance, will give you confidence you have the right cover, and the right package at the right price. Time well spent.

What should be reviewed before any policy renewal:

1. Stock and contents

Your level of stock held during covid restrictions may have increased or decreased due to consumer demand. Remember flexibility is key when revising and planning your stock cover, ensure you re-evaluate current stock quantities and not only have the level of cover required for current trading but also ample cover during your seasonal peak (golden quarter) preventing "underinsurance".

2. Public, Product and Employers liability

Successful independents continue to plan and evolve their product/menu offering to match their business plans, customer demands and seasonal trends. Reviewing your level of Product Liability will give you peace of mind should a customer buy a faulty product ( e.g. a household item which causes a fire or a meal containing a sharp object that causes harm), the claimant's costs and expenses would be paid (you no doubt source top quality products and would never experience such scenarios, but it's good to know this cover is here).

Recent events seen at airports, with the delay and cancellation of flights due to staff shortages, will no doubt spread nervousness to book overseas holidays, fuelling the flurry of bookings for the great British staycation. Our high streets will once again enjoy the positive effects of the surge in tourists, visiting local shops, cafes and restaurants resulting in increased sales and staffing levels.

It is a legal requirement if you employ staff, even seasonal ones to have Employers Liability and it's important to take time to review how many full-time, part-time and seasonal staff are employed, and compare options available to safeguard yourself from fines and reduce the risk of financial loss and having to cover the shortfall yourself.

If you do not have Employers Liability, the Health and Safety Executive (HSE) can fine you £2,500 for each day you don’t have it, with a further £1,000 daily fine for not displaying it.

3. Increased Turnover

In recent months independent businesses seeing an increase in footfall and revenues, including turnover right across UK high streets and town centres, be sure you include any increases in your insurance review.

4. Claims service

Business insurance is a service that you pay for and one that you hope you never have to call, but should the unthinkable happen, you want it to be as stress-free as possible and feel confident that the insurer you choose is reliable and will pay out in the event of a claim. Does your chosen policy offer this?

As a small business owner, you look for a “white glove” service, working with a team of claims experts, processing your claim quickly whilst providing clear communication and getting you back up and running as soon as possible, the type of service YOU might provide if you were running a claims team.

Choose a provider whose claims team not only offers a professional service but also additional support for business owners. Legal Expenses cover is included as standard, saving time and worry for issues such as employment, property and tax disputes. As a Bira Insurance customer, you gain free access to an online legal service which offers a wide range of document templates from employment contracts and settlement agreements to leases and Health & Safety statements.

You will also benefit from a legal advice helpline providing immediate advice on all legal problems affecting your business 24 hours a day, 365 days a year coupled with tax advice from the tax helpline or use their counselling assistance helpline which is available to your employees and their families, saving time money and worry.

5. Change in property value

 Rebuild costs rise over time and the independent business owner runs the risk of being underinsured (the sum insured does not provide enough to cover the cost of damage or loss to items/buildings listed under your policy in the event of a claim).

When renewing your current buildings insurance take into account that commercial property has enjoyed its biggest month-on-month hike in the worth of the year, with a 1.1% increase in May, as detailed in https://www.struttandparker.com/knowledge-and-research/large-value-growth-uk-commercial-property

Quick, clear, tailored package and hassle-free cover

Understanding independent high street businesses and seeing the passion they have for what they do including challenges and setbacks form the foundations of a great policy offering. Look for an insurer who is passionate about supporting independents, and championing small business owners and their ventures, by offering tailored insurance.

Bira Insurance is an independent company set up to serve the independent community. We believe that the service, personality, and knowledge that independents bring, are at the heart of the future UK economy.

We do all the heavy lifting for you, learning everything we need to about your individual business to create an insurance package tailored to shops, cafes restaurants and bakeries, we even throw in a discount for your great Google reviews.

Our online journey digitally walks you through the package selection and buying process in under a minute. Or if you rather, our team of experts are on hand to discuss specific policy, package sizes and cover requirements, giving you the confidence, that you have the right cover and the right package at the right price.

Clear, hassle-free, quick and competitive cover is only a click, call or connect away.

What next

Select the right package, that is easy to understand, offers the cover you require, is competitively priced and provides a great claims service. This is put together in an easy-to-understand document, enabling you to do more exciting things!

You need to fulfil your part of the insurance bargain too, by taking reasonable precautions to prevent bad things from happening. This means having appropriate security precautions in place, maintaining your property properly and obeying the law – especially in terms of health and safety. If both sides do the right thing, insurance should not be complicated.

Thinking about bad things that “could” happen to the business you love is never nice, but by taking pre-emptive prevention measures you will minimise those things happening and in doing so give you control, saving you time and money and getting the most out of running your business.