Business insurance is essential during COVID-19

Closed business door with note saying"We cannot wait to see you again stay safe" - Business insurance is essential during COVID-19

The spread of coronavirus is like nothing the UK has seen for a century. The health cost of COVID-19 has been tragic, but the COVID-19 pandemic is starting to evolve. The focus is shifting towards an effort to return to work, while addressing the changes needed in the months ahead.

For many businesses preparing to re-open as well as introducing social distancing measures, there’ll be some immediate financial pressures to cope with. A lot of businesses will be concerned about cashflow and looking at opportunities to make their business cheaper to run.

One of the areas business may be reviewing are their business insurance policies and service agreements.

My business is closed, why do I need my business insurance policies?

  • Protect your business against risk
    Business insurance helps to protect business owners’ everyday risks, like workplace accidents, public liability, theft if stock or premises damage, legal costs and cyber-attacks. There are also some insurances that a business is legally required to purchase such as employer’s liability cover and commercial vehicle insurance.

  • Contingencies in place
    Even in a time when a business is unable to operate as usual because of coronavirus, the standard insurable risks faced, like vandalism and theft are unfortunately more likely when your business property is unoccupied.

  • Payment options to cover financial burden
    If your business is facing financial problems with paying for your business insurance policies, it’s always best to speak with your insurer instead of simply cancelling your Direct Debit or payment plan. They may be able to help with reducing the cost by revising the type of cover that’s included with your policy or look at other payment options for you. It would be terrible for businesses without adequate insurance cover to experience a loss at this time.

What about service or maintenance agreements?

Cleaning contracts

Many businesses have ongoing agreements with companies to help with the maintenance of their premises. Agreements can include cleaning, boiler maintenance, plumbing and drainage, and facilities management.

When businesses re-open after the lockdown, cleaning will become very important. Businesses should discuss the government guidelines with their cleaning company and their company employees to make sure they’re followed.

Annual boiler service & commercial boiler maintenance

Although we’re approaching warmer months, businesses will still need hot water and quite a few key services, such as care homes, will also require heating. Because of the government guidelines, boiler servicing generally couldn’t be done during lockdown. It’s easy for businesses to take their boilers for granted especially if the boiler appears to be working properly. The recommended frequency of commercial boiler servicing is once every year. Once the lockdown restrictions start to lift, it’s the perfect time to arrange a boiler service to help make sure everything is running safely and efficiently.

Government support to pay for business insurance

The government has announced a range of financial measures to help businesses manage their finances during this time. It’s worth reviewing these and seeing what help is available, and considering your cashflow before cancelling insurance or service agreements that you may end up regretting.

Once your business is back up and running, take a moment to consider and plan to continue your business insurance and maintenance agreements. This will help to ensure your business keeps running smoothly and you can carry on providing a service to your customers.

Related links

Business Care

Commercial plumbing & drainage

Government financial support

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Contingency planning tips for small businesses

5 things business owners can do this summer

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