How Loss or damage can affect a UK business

Running a successful SME business, means that unfortunately owners don’t have a crystal ball to see into the future, especially when a loss or damage situation arises. For company owners, this can be tricky when trying to value a business to ensure that it is protected against unforeseen loss or damage circumstances.

Robbery, fire, flood, wind damage, sickness and ill health, or an equipment breakdown, are all impacting elements which can halt production. Not only is this detrimental to the business owners’ profit growth but can also affect income which could affect paying employees on time.

To find adequate cover against loss or damage, here are JRW Risk Solutions we recommend breaking down your company assets into the following categories and then placing a value on them so that you can build a profile as to how much your assets are worth and how much insurance cover your will need to protect each of them.

Loss or damage, what can be protected?

  • Property – Buildings sum insured must represent the full rebuild cost of a property including labour charges and materials, survey, and professional fees, plus any site clearance and removal of debris.
  • Contents and Stock – Premises contents such as machinery, plant, computers, equipment or office contents and storage facilities including shelving will also need to be covered. Stock items are the goods and products stored or manufactured and sold by the business, raw material value plus work in progress costs.
  • Gross Profit – (Gross Profit = Turnover – Uninsured work expenses) The turnover is protected to include the turnover sum, closing stock and any work which is in progress.
  • Uninsured expenses – This covers aspects such as packaging, raw materials, components and goods for re-sale. It also includes commissions, discounts, and bad debts.
  • Revenue, income or rent – When a business endures a loss or damage circumstance, reduction in revenue and income loss is inevitable. Rental income applies to whereby a property is rented to a tenant, yet rents can’t be collected due to the unforeseen incident.
  • Indemnity periods – When a significant circumstance occurs, the SME business should expect an indemnity period of up to 2 years. This gives the company the time that it needs to clear the site, make new design and planning applications, rebuild the property, replace plant and machinery, source stock and rebuild both customer and supplier relationships and order books.

Loss or damage cover with JRW Risk Solutions

JRW Risk Solutions are here to help.  Our professional team will guide you through each aspect to build a protection plan which is bespoke and that supports your business. To find out more and to mitigate against risk, please get in touch or see our website for more details on commercial insurance we can assist on.

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