By Paul Scott ACII
Branch Director
Jelf
SECURING the right insurance policy is essential to help protect your business from unexpected losses. You can replace physical assets but this can take considerable time and along the way, can have a hugely negative impact on trading that can take years to recover from. Business Interruption Insurance (BI) is essential for your business.
But, having a business interruption policy in place might not always mean you are fully protected.
Did you know?
43 per cent of policy limits leave the policyholder underinsured, by an average of 53 per cent* If impacted, this could leave you open to a significant financial loss.
Follow these three tips for avoiding underinsurance and protecting for business’ future.
* Approximately 75 per cent of Business Interruption (BI) sections of a policy offer a 12-month indemnity period.
If your business needs it, make sure you request a lengthier indemnity period! Typically, it can take a business between 18-24 months to recover from major incident.
* Make sure growth is accounted for
If you have a business plan that estimates annual growth, make sure this is accounted for in your BI insurance- or risk losing all of your hard-earned success!
* Two out of five people surveyed say the main reason they are underinsured is down to a misunderstanding of the definition of the definition of gross profit, or a miscalculation*.
Make sure to include items such as staff wages, utility costs etc. when calculating gross profit to ensure you are sufficiently covered.
Jelf are experts in insurance, risk management and employee benefits. The team, based in Northampton, are on hand to provide exceptional service and tailored solutions to meet the needs of local businesses. They can also conduct confidential reviews of existing arrangements.
Jelf also has access to broad resources and solutions across all our sister companies in the Marsh & McLennan Companies (MMC) group. Being a part of MMC provides Jelf with unrivalled scale and strength, whilst at the same time remaining a trusted local and community based adviser.
To speak to your local representative, call 01604 251820, email or visit us at www.Jelf.com
*Source: Zywave: Commercial insurance profile July 2018