Robust risk management practices can help to protect your business from a range of potential disasters, but it can be increasingly difficult to prepare for the worst in an unpredictable market.
In the midst of political uncertainty regarding Brexit, rising adverse weather instances at the hands of climate change, a rapidly ageing workforce and constantly evolving technology, the UK market certainly seems to be lacking predictability.
In fact, recent industry research revealed that nearly 60 per cent of UK businesses feel that the next 12 months will be unpredictable. What’s more, organisations of all sizes agree that unpredictable events will have negative impacts on their business. In response to such unpredictability, organisations are attempting to decrease their risk with the following top mitigation methods:
- Putting additional funds aside for emergencies (34 per cent)
- Diversifying products and services (33 per cent)
- Diversifying their client base (31 per cent)
- Preparing for multiple outcomes (30 per cent)
- Developing a risk management plan (29 per cent)
While these strategies can help reduce your risk during an unpredictable event, the most vital aspect of ensuring continued business success in the hands of disaster, is having robust, accurate and effective insurance cover. Even when the market is unpredictable, your insurance shouldn’t be. Consider these tips to secure the best cover:
Avoid under-insurance
Despite having an insurance policy in place, your cover won’t be nearly as effective if your business is under-insured. Make sure your organisation’s sums insured remains accurate by regularly updating your broker on the value of your premises, any changes (e.g. demolition or remodelling) that take place on the premises and on-site stockpiling practices.
Set proper limits
In addition to communicating changes with your broker, be sure to carefully consider an appropriate maximum indemnity period for your business interruption cover by participating in scenario modelling. Analysing possible catastrophe scenarios will help your business further understand how much time and resources are needed to recover from disaster.
More than anything, it’s crucial to routinely communicate with your broker to make sure you have the best cover for your business. For more guidance and specific insurance solutions, contact Pound Gates today.