H&H Insurance Brokers, which operates in Scotland, has outlined how the cost-of-living crisis is hitting all sectors of society, and businesses are facing not just higher heating bills but rising costs regarding a range of materials and supplies, meaning they can be holding increased values of goods on their premises, putting them at risk of being underinsured.
This can lead to business-owners considering cutting costs, and potentially reducing the wrong ones, which could put their organization at risk, the firm is warning.
UK economic growth slows as cost-of-living crisis starts to bite
Paul Graham, managing director of the broker, said: “Costs rising at the rate they are is an issue for absolutely everyone. In terms of business-owners, it can mean that the levels of cover they have taken out previously will no longer be appropriate for them if anything goes wrong.
“Sadly, although people don’t want to think it will happen to them, the reality is that things do go wrong. We have paid out £2.9m in claims in the last 12 months, which shows why it is so important to have the correct insurance cover at the right price.”
H&H Insurance Brokers operates across the Scottish Borders, with an office in Newtown St Boswells, as well as the north of England, and Wales, is a member of the British Insurance Brokers’ Association, and says it has 30 years’ experience of serving business -owners, including in the farming, rural industries, tourism and hospitality sectors.
Mr Graham also said: “We understand that everyone is looking at their outgoings and looking at ways they can save money right now. Unlike a utility, cheap insurance can lead to far greater expense.
“What is vitally important is that business-owners engage with a professional insurance advisor who will find the right insurance cover for their business, otherwise they risk losing everything. Using a trusted broker who gives professional, quality advice means that if anything does go wrong that they have the correct cover.
“A broker, unlike an agent or dealing directly with a single insurer, can look at the whole of the market and see what will best suit a particular client’s needs. That means people have one less thing to worry about because they know if the worst it happens that they are covered.
“If businesses don’t get that advice now, and find out the hard way that because of rising costs they are underinsured, then they are putting everything they have worked for at risk.”
He also stressed that damage isn’t limited to buildings and loss of stock, it can be downtime before a business is able to get back on its feet – and that could prove perilous. “Without the correct insurance and with no income coming in, that can spell the end for a business,” the company boss also stated.
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