Businesses at Risk of Underinsuring Stock with the Cost of Living Crisis

The cost of living crisis is hitting all sectors of society with many people looking to re-evaluate their financial commitments and business owners are no different. They are at risk of losing all they have worked for if they are not correctly insured.

As well as higher energy bills, businesses are facing rising costs of a range of materials and supplies which means they can be holding significantly higher values of goods on their premises putting them at risk of being underinsured.

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.

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. 

“We have paid out £2.9m in claims in the last 12 months which shows why it is so important to have the correct insurance cover at the right price.”

H&H Insurance Brokers is one of the UK’s leading  independent insurance brokers and operates across the North of England, the Scottish Borders and Wales, and has 30 years experience of serving business owners, including in the farming, rural industries, tourism and hospitality sectors.

Paul said: “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.

“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.

“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.

“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.”

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