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Why cutting cover is a ‘non-negotiable’ in inflationary times

  • Sophie O'Leary
  • July 21, 2022

The cost of everything is going up. Australians are paying more for iceberg lettuce, petrol, electricity and just about every daily necessity, and with inflation tipped to hit 7% by this coming summer, many have already started on a belt tightening exercise.

 

Small business owners like yourself are no doubt going through the budget too, carefully reviewing every item in the expense column to see what savings can be found as you look to tide though this period.

 

But if the thought of crossing out insurance did cross your mind, hold it back.  It could be a very short-sighted decision that may well compromise your business should you need to make a claim one day.

 

It’s tempting to view insurance as an easy target for savings when times are rough and when nobody knows how long prices are going to stay this high.

 

But have you thought about why you have insurance for your business? It’s to protect your livelihood if an unforeseen event was to strike. We hope it never happens but what if it does?

 

Let’s say you need to repair your equipment and premises because of an accidental fire. Your business cashflow is affected and, worse still, the repairs are expensive and taking a long time because of the ongoing supply parts shortages.

 

If your business is insured, chances are you will be covered for the fire damage, and that’s a huge relief as you know you will not have to dig into your financial resources to put your business back on track.

 

And instead of worrying about how you’re going to pay for the repairs, you can look forward to restarting your business and welcoming back your customers.

 

Of course the opposite may well be the case if you had gone ahead to cancel your insurance. So as your risk adviser we will say “bury that idea” if you did think for a moment that you can do without insurance for your business.

 

Insurance is critical and essential. If you are struggling to pay your premium, talk to us to see what can be done. We work for you, not the insurer, so we have a duty to work with you to find the best solutions for you and your business.

 

The right advice is what your business needs when times are tough.

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