On April 12^th, the hospitality, food, retail, fitness and beauty industries were allowed to finally open their doors for business. This highly anticipated move has been hugely welcomed, although many businesses are operating with insufficient cover. According to Premium Credit’s Insurance Index Report (2020); they found that over the past year, an alarming rate (51%) of small and medium-sized firms have stopped paying for what would be deemed as essential covers.

Due to reduced number of staff and wage-rolls as a result of the pandemic, Employer’s Liability seemed to top the list of cancelled covers, which also includes Public and Products liabilities, Business Interruption, Property, Professional Indemnity, and Cyber insurance.

If you have stripped back your covers during the lockdown, it is worth reviewing as you start to return to regular operations. Below we take a look at some essential covers, and why you should have them in place.

Employers Liability

With lockdown easing, businesses have been able to get staff back into work. If you employ staff, you are legally required to hold this insurance under the Employers’ Liability (Compulsory Insurance) Act 1969. 

The cover provides employers indemnity for compensation claimed by employees, alleged to have been caused by the negligence of the employer. A company may not think they have employees, but, its nature of, and control over, their work that would determine whether a company is liable for them. Unsure if you require this insurance? Please get in touch.

Public Liability

This insurance protects your business in respect of your legal liability to members of the public for death, bodily injury, illness or disease, and for loss of or damage to property. For example, wet floors and increased footfall make for a perilous cocktail that could easily lead to accidents. This is when your public liability insurance really shows its worth, providing you’ve done all you can to minimise the risk of injury to your customers.

Product insurance

This cover this relates to any legal liability arising from products supplied by you. Imagine your most popular product is selling like hotcakes, and then it needs to be recalled. If you’ve rebranded the packaging in anyway, or the manufacturer can’t be sourced, you might find your business becomes the first point of contact for compensation.

Business Interruption

Statistics show that 19% of SMEs stopped paying for this insurance over the past year. Adverse weather, civil unrest, fire, burglary, vandalism; there are a huge range of events that could potentially stop your organisation from operating as normal. No company is totally immune.

In the event of business interruption, the usual costs such as salaries, rent and so on need to be paid, but no new income will be received. This cover provides compensation for loss of income as well as assistance with meeting the increased costs of working while premises are restored, such as temporary offices, overtime, hired equipment or transport costs.

Cyber

Over the past year, more than half of SMEs in the UK have experienced some type of cyberattack, with no end in sight. Your business possibly will have upgraded technology to enable an online booking system, to allow payments and orders for table service, and you may have boosted your online profile and marketing strategies to drive customer engagement.

Having Cyber Insurance in place could also issue your business with an extra layer of protection. Not only can it help your business with the financial repercussions of a cyberattacks. Whether it’s a data breach, ransomware attack or something else, it can also provide you with a dedicated advice line so you know that you’re doing the right thing each step of the way.

Correct Sums Insured

A lot of insurance policies for retail outlets, restaurants, pubs and bars have reduced their contents and stocks sums insured whilst being closed throughout the UK national lockdown. With getting ready to reopen, you may not have considered reviewing this aspect. Having the incorrect sums insured means that in the event of a claim, a business would only receive a proportion of the claim settlement, depending on the level of underinsurance, or it could be refused altogether.

While some cafes, restaurants, pubs, and bars have been continuing to operate through lockdown with delivery and takeaway services, food and drink establishments can now accommodate customers outdoors. If you have expanded your menu and your outdoor seating capacity, it is likely you have more contents in the kitchen/bar, and purchased more outdoor furniture, outdoor heaters and lighting, and maybe even a tent for outdoor cover. Should this be the case, you should check your cover is sufficient.

Do you offer treatments and sell products in your beauty salon or hairdressers? As well as preparing your premises, those in the beauty industry will also need to consider their sums insured. If you have recently restocked your shelves and brought equipment back into your premises, ensuring your sums insured is correct would protect you from any financial loss.

Is your Business Insurance due a refresh?

It’s likely that your business has made some changes since the start of lockdown and you may have even made amends to your insurance already. If you have reopened your business, or are planning to soon, it’s essential to make sure your insurance meets your current requirements. To get your insurance back to where it needs to be, please contact us to find out more.