How Do Changes To Your Business Affect Your Insurance?

Changes to your business can bring about unintended consequences that many business owners may not always consider. This is certainly the case for the company in our story below;

There once was a photocopier business who decided that the best way to maximise the services that they could offer was to re-structure their business. As part of the changes, the company purchased a new industrial unit, with more machinery and staff, including more engineers who would be visiting customers to service their machines.

The photocopier business was very pleased with the changes they had made, but these changes also brought a new challenge- their Insurance needs had also changed.

Their contents insurance with their previous unit would now need to be updated. Primarily because with the purchase of their new industrial unit, they would need buildings and contents insurance.

As well as buildings and contents insurance, they made sure they got business interruption cover in case anything were to happen to the building. Their business interruption insurance would help the business to survive and continue trading, or replace revenue while setting up in a new location. The business interruption insurance gave the directors the peace of mind knowing that if something happened to the building, the insurers would help find a new place, help replace revenue and lost clients.

Instead of selling photocopiers, the business would now be servicing copier machines. Because they had changed the way the business operates, staff would need increased public liability cover to protect them while they work away on third party sites.

Working at third party sites also meant that staff would need transport to travel, so the business purchased a fleet of vehicles to help their staff. By taking out a commercial fleet policy, they ensured that their vehicles were protected under one policy.

Now that the business owners had protected their business, they wanted to make sure they were protected against any eventuality. Their insurance helped by increasing their liability cover.

After making all these changes and updating their insurance, the business tendered for a contract at an airport. After speaking to their insurance and discussing any increased premium for working “airside” the company was ready to tender with a competitive but realistic quote the business could continue to grow safe in the knowledge that their insurance would protect them.

The moral of the story is that you should always notify your insurance about changes to your business. With the right broker, you can discuss and make changes over the phone instantly, with minimal disruption to your busy schedule. Specialist insurance brokers, like Cascade, are at the end of the phone and are ready to offer custom insurance advice. No scripts. No Middle man. No complicated Jargon!


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