Rising Costs Could Impact Insurance Cover for Businesses
The continually costs to business owners could result in UK business owners becoming at risk of losing out due to a lack of insurance cover.
New data shows that the rising cost of living crisis in the UK is hitting all sectors of society with many people looking to re-evaluate their financial commitments.
Due to the spike in energy bills, Council Tax and National Insurance hikes, companies are facing increased costs. These are being added to by the increased costs of materials and supplies. Data shows this can lead to business owners considering reducing costs within their business, and potentially reducing the wrong costs which could put their business at risk.
Rising cost of living in the UK is impacting insurance companies
One of the UK’s leading independent insurance brokers, H&H Insurance Brokers, operates across the North of England, the Scottish Borders and Wales. The company has and has 30 years experience of serving business owners, including in the farming, rural industries, tourism and hospitality sectors.
Commenting on the situation, Paul Graham, managing director of H&H Insurance Brokers, said, “Costs rising at the rate they are is an issue for absolutely everyone.
“In terms of business owners it can mean that the levels of cover they have taken out previously will no longer be appropriate for them if anything goes wrong.
“Sadly, although people don’t want to think it will happen to them, the reality is that things do go wrong.
Graham said H&H Insurance Brokers have paid out US$3.25mn in claims over the last 12 months - a sum that outlines the importance of better risk assessment and premium prices. He said that rising costs is resulting in companies cost-cutting their insurance policies.
“We understand that everyone is looking at their outgoings and looking at ways they can save money right now. Unlike a utility, cheap insurance can lead to far greater expense.
“What is vitally important is that business owners engage with a professional insurance advisor who will find the right insurance cover for their business, otherwise they risk losing everything.
“Using a trusted broker who gives professional, quality advice means that if anything does go wrong that they have the correct cover.
Graham advised, “A broker, unlike an agent or dealing directly with a single insurer, can look at the whole of the market and see what will best suit a particular client’s needs. That means people have one less thing to worry about because they know if the worst happens that they are covered.”
Businesses require advice on their lowest cost insurance options
If businesses don’t get that advice now, and find out the hard way that because of rising costs they are underinsured, then they are putting everything they have worked for at risk.
“It’s not just damage to buildings and loss of stock, it can be the length of time before a business is able to get back on its feet. Without the correct insurance and with no income coming in that can spell the end for a business.
“Another practical way we help people have the correct cover is that we offer credit, enabling clients to spread payments over ten months to help with cashflow when they are looking to meet rising costs in other areas.
Graham added, “Like any quality professional service, we will always work alongside our clients to give them the best possible advice and support them in these challenging times.”
