Most businesses are experiencing increased financial pressure due to the challenging economic climate, with many looking to save money in any way they can. Reducing or cancelling your business insurance to cut down your premiums is a risky approach, and according to PSC Connect, most insurance experts have strongly suggested against discontinuing your cover in the wake of the Covid-19 outbreak.

If your business premises is currently unoccupied due to forced closure or working from home, it might be tempting to cancel your fire and property insurance. But simply closing the doors doesn’t reduce the risk to your office or shopfront. Events such as burst pipes, storms, fires and burglaries can still occur, and without insurance you could face significant cost to repair the damage or replace lost items.

Likewise, public liability and professional indemnity insurance are just as important at the moment as they were 12 months ago, even if you have temporarily stopped trading. Incidents that arise during periods of no cover may not be insured, even if you had cover at the time of performing the work or providing the advice. If you are considering changing or cancelling your policy it is imperative that you get accurate advice from your TJL broker.

If you need to cut your business costs due to financial constraints, there may be relief available to you that won’t leave you uninsured and exposed. Many insurance companies are offering to defer premium payments, freeing up cashflow for businesses. They are also offering to maintain full insurance cover on premises that have been closed due to Covid-19, without any increase to the premium charged. Additionally, most insurance companies are also offering phone counselling to clients experiencing hardship or emotional burden due to the pandemic.

If you are considering adjusting any aspects of your insurance due to the impact of Covid-19, please contact Shaun or Matt at TJL Insurance in the first instance to obtain confidential advice for your unique situation.