Feature
Manufacturing First you clear the debris, then get planning
permission, then the building work starts and by the time you blink eight months have gone. Which gives you four months for the building work to be completed, order new machinery, new stock, win back all your old customers or get new ones!
MH: Do you think that because people don’t care they will never get it right?
AJ: No, I don’t think it’s that at all. I genuinely think that people just don’t understand it, because no one has ever taken the time to explain these things. We titled this “what’s the worst that could happen?”- well in the example earlier, after 12 months the money stops. All the commitments you’ve made, the time you’ve spent talking to people to keep them as clients- you lose it all. The worst that could happen is you go bankrupt. It’s as simple as that. All because someone never took the time to make sure you got it right.
MH: What would you advise manufacturers to do?
AJ: Two things: First, do a complete walkthrough of your premises and add up the cost of every piece of equipment, stock, furniture- the works. Make sure the amount your insured for is correct. It’s important to understand the difference between the amount the insurers need to know isn’t the same as your accountants. Depreciation of assets will only hinder your insurance, look at your equipment for example, what’s the cost to get the exact same? Has it been upgraded, made obsolete, what’s the cost for new equipment? It’s something to bear in mind.
MH: Any last words of wisdom?
AJ: Make sure your broker has a great relationship with the insurer they are putting you with. Speed is everything- if you can get a claim logged and someone out to assess the damage within 48 hours it will save you so much time in the long run. Your broker must work for you- not the insurers. So, the worst that could happen is you lose your
business and go bankrupt, or you check with your brokers on your insurance premiums and if they’ve gone up is it worth risking over a few hundred extra quid?
Secondly, get your broker to sit down and go
through business interruption cover. Go through how you calculate your gross profit for insurers, work out how long to set your indemnity period and get it right. It’ll be the difference between going bankrupt or carrying on should the worst happen.
‘Do a complete walkthrough of your premises and add up the cost of every piece of equipment, stock, furniture- the works’
Act before the money stops
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