The RSA has issued a warning to small firms that insurance in UK is vital for their well-being and that they must have the right cover at all times, and for all the key areas.
The warning – part of many issues that are currently preoccupying insurance in UK at the moment – comes after a RSA survey which discovered that a touch over 40% of companies became more complacent about insurance matters during recessionary times. The implication being that when times get tough, corners are cut and belts get tightened in the wrong areas, including insurance in UK.
The RSA Trading Director (with responsibility for small to medium sized enterprises) said: “While some business risks tend to be reduced during times of growth compared with recession, they are always present and it is important that businesses ensure they have the most appropriate cover at all times.”
The study also revealed that the most important areas for any small business insurance were twofold: business interruption and professional indemnity.
The reasons are plain. In a recession, the risk of business interruption is greater, so provision has to be made for this eventuality. Also in a recession, money is tighter and projects can be far less forgiving when it comes to potential mistakes and errors which can for example, make customers more litigious. So for any company not having proper indemnity insurance, the risk is that they are not preparing themselves for the worst case scenario.
The message is of course, when it comes to insurance UK, companies should get the best cover they can afford.
No comments:
Post a Comment