Protection for Your Business

Whilst some premiums can be reduced to reflect a change in business activities, new covers may now be worth considering.

When the going gets tough, every sensible business looks at its costs and tries to make savings. For some it’s just good housekeeping; for others, a desperate attempt to stay in business.

As premiums for many types of insurance are based on business activity levels, you could make savings if stock levels fall, profits reduce,  turnover and wages are cut, or vehicles are sold or taken off the road. You should advise us if any of these  apply to you, although  we will raise this at your annual review.

It may be  tempting  to cut out some covers,  but this is not recommended unless  a company’s  survival is in real doubt.  In a climate where  borrowing is difficult, it may be harder  to withstand  an uninsured loss than when  times are good. A shortfall in any claims settlement may trigger a cash or credit crisis distracting you from focusing on the overall health of your business.

Indeed there are some covers, which you may not previously have considered, that can become particularly valuable in times of financial uncertainty.

Commercial legal expenses and employment protection

This insurance  covers  the  costs of legal disputes  and  unfair dismissal  claims.  In  a  recession,  litigation  increases  and many employers are forced to reduce their workforce. The appropriate protection  provides peace  of mind that, if such a situation occurs, any subsequent payouts will be covered.

Directors’ and officers’ liability

There  is  an  increasing   incidence   of  Directors  and  officers being sued  as individuals, as well as the company  they work for; the likelihood of this inevitably grows when  the financial future  of a business is in doubt.  If a claimant is successful,  a Director can not only lose the business but personal  assets as well. Directors’ and  Officers’ Liability cover can help  protect senior  figures  within  a business from  such  threats  to  their personal  wealth.

Credit insurance

This type of cover has suffered  from some  negative publicity recently,  but  it can  still provide  a cushion  when  a client  is declared  insolvent, it also helps businesses make credit decisions.   It is a  viable  alternative   to  factoring  or  invoice discounting   and  can  help  with  bank  borrowings  and  cash flow.

All these covers may be well worth considering  in the current climate - if you’d like further details, please  call NCi now on 0800 046 1446 and see why UK businesses have been turning to NCi for all their Commercial Insurance needs since 1928.