Robison & Co

Office Risk Insights

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3 Misconceptions about business interruption loss you need to know

3 Misconceptions About Business Interruption Loss You Need to Know

Business interruption insurance is crucial for keeping businesses protected when unexpected events force operations to pause. Yet, this type of cover is often misunderstood, leading many business owners to overlook its benefits. Let’s address three common misconceptions so you can feel confident in how it can protect your business.

Misconception #1: Only big disasters trigger loss from interruption

Many believe that only major disasters like floods or fires trigger the cover. But in reality, even smaller incidents can lead to serious downtime for your business. For instance, a small fire or a burst pipe can disrupt operations significantly, requiring time for repairs.

Even if it’s not a large-scale disaster, this type of cover can step in to compensate for lost income, helping your business through temporary closures.

Takeaway: Even minor incidents can impact your business. Ensure you’re covered.

Misconception #2: My property insurance covers business interruption loss

Another common misunderstanding is that property insurance alone will cover all interruption-related losses. While property insurance is essential for repairs, it doesn’t cover lost income if your operations must pause. Property insurance takes care of replacing damaged equipment or repairing the building itself.

However, only business interruption insurance compensates for lost income during downtime, covering essential costs like rent, payroll, and other operational expenses.

Takeaway: Property insurance covers repairs, while business interruption insurance covers lost income. Both are essential.

Misconception #3: Natural disasters are the only events that cause interruption loss

Some business owners assume that only natural disasters trigger interruption loss cover. However, this is far from true. The cover also applies to other significant disruptions, such as cyberattacks, supplier issues, or machinery breakdowns.

For example, a cyberattack could lock your systems, while a critical machine breakdown could halt production. In these situations, business interruption insurance compensates for the income lost until your business is fully operational again.

Takeaway: The cover protects you from far more than natural disasters, ensuring that your business can recover from a variety of disruptions.

Protect Your Business Against Interruption Loss

Understanding these misconceptions can help you make informed decisions about the cover your business truly needs. The cover offers vital protection that goes beyond property repairs, covering the financial impact of lost income. By knowing the full scope of this cover, you can keep your business resilient during unexpected interruptions.

Ready to protect your business against the unexpected? Click one of the contact options below to discuss how business interruption loss insurance can keep you covered when it matters most.

To discuss a new policy, or current policy  please get in touch with us via one of the options below!

Book a call        01730 265500        Contact request form        hello@robison.co.uk

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Is Your Commercial Property Underinsured? Here’s 5 Ways to Protect Your Business

Is Your Commercial Property Underinsured? Here’s 5 Ways to Protect Your Business

Is Your Commercial Property Underinsured? Here’s 5 Ways to Protect Your Business

Whatever your business, the building that houses your operations plays a crucial role in your success. But what happens if disaster strikes and your commercial property is underinsured, leaving you with inadequate coverage to handle the damage? Nearly half of UK commercial properties are underinsured, leaving many business owners unaware and vulnerable to significant financial risks.

Navigating insurance complexities can feel overwhelming. That’s why we’re here to guide you, helping ensure your commercial property has adequate insurance so your business stays fully protected.

Underinsured Commercial Property Puts Your Business at Risk

When you insure your property for less than its true rebuilding or replacement cost, you risk paying out-of-pocket for repairs or reconstruction after an incident. This situation places unnecessary financial pressure during an already critical time.

In recent years, rebuild costs have risen dramatically due to increasing material and labour expenses. Yet, many business owners haven’t updated their policies. Inflation, outdated property valuations, and a general lack of awareness all contribute to underinsurance.

Robison & Co Can Help

At Robison & Co, we work to help businesses like yours avoid the pitfalls of underinsured commercial property. With our expertise, we ensure you have the right cover, giving you peace of mind that you’re fully protected.

How to Avoid Underinsured Commercial Property

Here are five ways to prevent underinsured commercial property:

  1. Get Regular Property Valuations
    Accurate and regular valuations ensure you’re insuring your property for its current value, not an outdated one. A professional valuation will reflect the real cost of rebuilding or repairing your property.
  2. Insure for Rebuilding Costs, Not Market Value
    Many business owners confuse market value with the cost to rebuild. These two figures often differ significantly, so base your cover on rebuilding costs.
  3. Adjust for Inflation
    Inflation impacts everything, including material and labour costs. Review your policy annually and adjust your sums insured to align with current economic conditions, ensuring your cover grows with the market.
  4. Set an Appropriate Indemnity Period
    When selecting business interruption insurance, choose an indemnity period that allows your business enough time to fully recover. If the period is too short, you may face exposure if rebuilding takes longer than expected.
  5. Regularly Review Your Policy
    As your business evolves, your insurance cover should adapt as well. Whether you expand, relocate, or upgrade your property, keep your insurer informed. Regular reviews of your policy help ensure continued protection.

Protect Your Business with Robison & Co

The risks of underinsured commercial property are real, but you can avoid them. Robison & Co helps you make informed insurance decisions so you’re not left unprotected when it matters most. Our experienced advisers work closely with you to assess your needs and ensure your commercial property has the right cover.

Don’t wait until disaster strikes. Contact us today to work with one of our expert brokers, and make sure your business is properly protected.

Peace of Mind and Financial Security

By partnering with Robison & Co, you’ll gain peace of mind knowing your insurance covers repair or rebuilding costs. Not only will you avoid financial loss, but you’ll also safeguard your company’s future.

To discuss a new policy, or current policy  please get in touch with us via one of the options below!

Book a call        01730 265500        Contact request form        hello@robison.co.uk

 

*All Images are taken from Unsplash

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Remote work: Navigating Insurance needs

Remote Work: Navigating Insurance Needs 

 

 

Embracing Remote Work: Navigating Insurance Needs for Hybrid Work Models

Remote work has become very common as the way we work changes. Many businesses use hybrid models, mixing remote and office work. This shift is flexible and convenient. But, it brings new insurance challenges.

Understanding the Hybrid Work Environment

In a hybrid setup, employees work from both home and the office. This flexibility has many benefits. However, it also creates unique insurance issues. For example, there are cybersecurity risks and home office liabilities. Addressing these needs takes careful planning.

Cyber Insurance for Remote Employees

With remote work, cybersecurity is crucial. Protecting data and systems from cyber threats is essential. Cyber insurance helps cover the costs of data breaches and ransomware attacks. So, employees working remotely need proper cyber insurance. This protection is vital for both personal and company data.

Liability Coverage for Home Offices

As employees set up home offices, liability coverage becomes important. Homeowners’ insurance might not cover business activities at home. Thus, business owners should consider extra liability coverage. This protects against claims from accidents or injuries in home offices. It ensures that both employees and businesses are legally protected.

Employers Liability Compensation Considerations

Hybrid work complicates Employers Liability. Injuries at home can qualify but proving them is challenging. Therefore, businesses need to work with insurance providers to clarify coverage. This ensures that employees are protected, no matter where they work.

Conclusion: Securing Your Hybrid Work Environment

As businesses adopt hybrid models, addressing insurance is key. By investing in cyber insurance, securing home office liability, and clarifying Employers Liability cover, businesses can manage the hybrid work environment confidently. This ensures safety, security, and well-being for both employees and the organization.

 

 

To discuss a new policy, or current policy  please get in touch with us via one of the options below!

Book a call        01730 265500        Contact request form        hello@robison.co.uk

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Under-Insurance

Understanding and Preventing Under-Insurance

Under-insurance occurs when a policyholder’s insurance coverage is insufficient to meet their needs. This can result in a claim amount that exceeds the maximum payout the insurance company will cover. Consequently, the policyholder may face a shortfall, leading to significant financial losses for the organisation. To avoid this, it’s crucial to take proactive measures. Here are six effective ways to prevent under-insurance:

Regularly Value Business Assets Accurately

It’s essential to frequently assess the value of your business assets to ensure your insurance coverage remains adequate. While businesses can perform these valuations themselves, hiring a professional can provide a more precise assessment.

Provide the Correct Rebuilding Cost

When insuring your property, always provide the insurer with the cost of rebuilding it, not its market value or the original purchase price. The rebuilding cost ensures your coverage reflects the actual expense of restoring your property in case of damage.

Calculate and Report Actual Total Revenue

To ensure adequate coverage, calculate your actual total revenue and report this figure to your insurance company. Accurate revenue reporting helps the insurer assess potential risks associated with your operation and provide appropriate coverage.

Determine an Appropriate Indemnity Period

Select an indemnity period that allows your business sufficient time to recover from any incurred loss. An appropriate indemnity period ensures you have enough time to restore operations without financial strain.

Increase Sums Insured in Line with Inflation

Regularly adjust your sums insured to keep pace with inflation. This practice ensures that your coverage remains sufficient to meet rising costs over time.

Review and Update Your Policy Wording

Periodically review your policy wording to ensure it offers the broadest cover for your needs. Update the policy whenever there are significant changes in your business to maintain comprehensive protection.

 

By taking these steps, businesses can significantly reduce the risk of under-insurance and ensure they are adequately protected against potential financial losses. Regular evaluations, accurate reporting, and proactive adjustments to insurance policies are key to maintaining sufficient coverage and safeguarding your business’s financial stability.

 

To discuss a new policy, or current policy  please get in touch with us via one of the options below!

Book a call        01730 265500        Contact request form        hello@robison.co.uk

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Attraction and Retention Trends to Monitor in 2024

The job market in the UK has been chronically tight for a while now. Many people left their jobs during the “Great Resignation” that followed the COVID-19 epidemic as a result of refocusing their priorities, creating a large number of employment openings. Employers still have difficulties due to high inflation and skills shortfalls, even if job postings decreased in 2023, suggesting a weakening of the market. As a result, companies this year will probably still have trouble finding and keeping outstanding workers. Employers may plan ahead and prepare their recruiting and engagement strategies by reading this article, which explores trends in attraction and retention to monitor in 2024.

Skills-based Hiring

In 2024, organisations will struggle to recruit employees with the right skills. According to ManpowerGroup’s 2024 UK Staff Shortage Survey, 80% of UK companies face this issue. Finding talent in administration, engineering, IT, and data is especially tough. Thus, many companies are shifting their hiring focus from degrees or experience to specific skills. Skills-based hiring can help find qualified candidates. Employers can benefit by valuing learning ability, offering strong growth programmes, and focusing on cultural fit.

Gen Z

Glassdoor’s Workplace Trends research predicts that in 2024, Gen Z workers will outnumber baby boomers in the workforce. Born between 1997 and 2012, Gen Z has different job expectations than previous generations. Employers may need to adapt to attract and retain this talented group. Gen Z is socially conscious and values social interaction, company culture, job flexibility, and growth opportunities.

Pay Transparency

Pay transparency gained focus in 2023 and will continue to grow in 2024. Savvy businesses use transparency as a recruiting tool. Recruitment company Reed found that 78% of job applicants are discouraged from applying if the wage isn’t disclosed. Pay transparency is popular with younger generations and can enhance an employer’s reputation by showing a commitment to fair pay.

Mental Health

Mental health and well-being remain vital concerns for employers. A recent Gympass survey showed that 77% of workers might quit if their well-being isn’t prioritised. Employees will leave if employers don’t meet their expectations for integrating well-being into workplace culture. Therefore, having a clear well-being strategy will be crucial for employee retention in 2024.

Keeping Up with Pay

The recent rapid increase in inflation has outpaced many employees’ wages, affecting attraction and retention. The Chartered Institute of Personnel and Development’s Labour Market Outlook predicts many companies will raise wages in 2024, with an average increase of 5%. This is not surprising given the current economic climate.

 

Furthermore, in an effort to enhance attraction and retention, firms are increasingly providing alluring benefits. According to data gathered by LinkedIn, 46% of businesses plan to improve their pay packages in 2024 by include benefits, such as remote working.

 

To discuss a new policy, or current policy please get in touch with us via one of the options below!

Book a call        01730 265500        Contact request form        hello@robison.co.uk