With global markets facing turmoil, all businesses are keen to save money. Some may cut corners to do so.
Insurance might seen by some as an area to make savings, but on the week of Halloween, the British Insurance Brokers Association (BIBA), speaking to the Insurance Times, urged businesses not to take drastic action as they could be in for a fright if they have to claim.
Eric Galbraith, BIBA's chief executive has written to the government asking for support in its campaign to ensure small businesses keep up their insurance. He fears some companies in cost cutting exercises may cut cover or even abandon risk management all together and invalidate their policies.
Other cost cutting exercises include "Cutting out the middle man", "Go direct", "Buy online". These are all terms that we associate with saving. Often these methods can be cost effective in the short term especially with commodity associated insurances. Business insurance on the other hand should not fall into that category.
BIBA's technical director, Graeme Trudgill, says that brokers remain important in helping clients by advising them on the best cover for them. "Small Businesses may look to the internet and get the cheapest cover, but with brokers you can get suitable advice which gives the right protection for you" he adds, "brokers understand clients' risks. They have a personal voice, which says 'You are not just a faceless client, you are an important client'.
Finally in a separate article, James Trevis of Heartland Events states; "with money tight, cutting back on adequate risk management and insurance is business suicide in the making. An uninsured loss could be the difference between paying your staff and having to let them go".
If you are looking for independent advice on risk management solutions, or insurance products that can fit your business needs. Call Heartland today on 01926 420 555.
