While the pandemic has been a significant challenge for all businesses, many local firms have responded fantastically well in the face of adversity to ensure they continue to thrive and survive.
Indeed the lockdown has caused many firms to change and adapt their business model to cope with new ways of working and dealing with customers. Many firms have moved to online delivery, are now working from home and in some cases, are using existing equipment to manufacture new products. In the face of constant change the response of many local firms has been outstanding.
However business owners should always remain aware that new risks may be faced with these new ways of working. Recent research by insurer AVIVA showed that one in four business have not updated their insurance cover for over four years. Even before the pandemic started last year, only 50% of SMEs had adequate levels of cover for their business.
The research also revealed that over two-thirds of SMEs (69%) diversified their business in response to the Covid-19 restrictions with 46% increasing their online operation, 35% offering a new product or service and 27% changing their product or service offering.
As firms continue to innovate, it is critical to adapt their insurance policies and ensure they have coverage in place to reflect the new ways of working. For example applying automatic cover extensions for people working from home and temporarily unoccupied premises or where taxi drivers have switched their business model away from carrying passengers to delivering.
Businesses who have not changed could still face increased, or different risks.
Jamie Harvey, a director at chartered broker IFM Insurance, said: “Many local firms have responded brilliantly to lockdown by being innovative in the face of real adversity.
“However, it is imperative to ensure their insurance cover reflects any changes they make. A broker can help review their insurance arrangements often and ensure that they are fit for purpose, particularly where a business has introduced new ways of working.”
