OAMPS Insurance Brokers advises businesses across all sectors to review their risks in the lead up to the new financial year and avoid the pitfall of being ‘underinsured’.

Businesses frequently focus on the potential for property damage as the key risk likely to cause significant disruption to their ability to carry on normal operations. While it’s obvious that major property damage could see the immediate closure of a business, it is the ongoing affects that can put people out of business for good.

“While most businesses have insurance to cover against incidents like fire, less thought is often given to the ongoing consequences of a major business disruption. While property insurance may cover rebuilding, it won’t take care of things like the bills and wages while the business is being re-established, says Tony Walker, OAMPS’ National Affinity Manager.

“Replacing stock and equipment takes time as well as money. Businesses need to consider the profit losses they will suffer while being unable to operate. That’s where a business continuity plan backed up by business interruption insurance can be a business saver,” Mr Walker added.

Business interruption insurance is one of the most frequently overlooked types of cover, especially by small to medium businesses. But it is one of the most important aspects of a businesses insurance program, as it will:

• Ensure that bills can be paid if turnover is reduced
• Cover lost profit
• Pay for additional costs that incurred to enable trading to continue
• Cover the cost of professional fees like accountancy and legal expenses incurred when preparing a claim