Businesses shouldn’t cancel essential protections just to cut costs
Published 09 June 2020
As restrictions ease business owners shouldn’t sell themselves short on essential protections. Business insurance expert Stephanie Fox explains why.
When social distancing is relaxed there is bound to be a rebound back to trade demand by consumers, although some changes may be here to stay.
Fox urges owners to focus on a return to normal trading conditions during the uncertainty of the next few months. Cutting insurance cover or leaving some policies out will leave operators exposed, she warns. Instead she wants businesses to focus on their needs over cost cutting and to discuss their situation frankly with their insurance broker at renewal time.
“Whilst things are different now, with the restrictions lifting, they may not be in a couple of months and you don't want to be cutting covers or underinsuring things and leaving [your business] exposed"
Stephanie Fox, Gallagher
This consideration is especially applicable to businesses that responded to the pandemic restrictions by changing their business model or by standing down staff.
Government provisions such as the JobKeeper allowance, payroll tax deferments and the $66.1 billion rescue package to help businesses stay afloat, following on from the $17.6 billion stimulus package for small- and medium-sized businesses, are intended to enable operations to ride out the restrictions and return to trading and profitability.
In the meantime, “We want to make sure that cutting covers for the sake of cutting costs is not what they’re doing,” Fox says.
“Any advice that we give them is long term to set them up during the policy period so they don’t get short-changed if they need to claim when they are back to normal, when their turnover is back to normal but their insurance cover is not.”
Hear Stephanie Fox talk about how Gallagher can work with business operators to achieve essential insurance protection within their means.
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