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Business Interruption insurance could save Christmas from disasters
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Santa would be wise to take out key person insurance
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What would happen if Santa was unable to deliver presents this Christmas Eve? Well, if he were a sensible business owner he would have insured against the perils that could wreak havoc for Christmas.
When you are Santa and under pressure to deliver presents around the globe in one evening, you will want to be sure that nothing is going to stop you carrying out your job.
The elves who supply all the toys could have a warehouse fire, Rudolf’s nose could go out or the sleigh suffers unforeseen catastrophic failure but Christmas could still be saved if Santa had the right insurance in place.
With a little help from his insurer, Santa could quickly hire a new sleigh, find a replacement supplier for the toys, arrange for a head torch for Rudolf and even cover any additional costs so that no little boys or girls go without this Christmas.
Let’s hope that Santa is better protected than the majority of businesses – research carried out by commercial insurer NFU Mutual found that only 18% of businesses reported having a business interruption (BI) insurance policy.
And what if Santa himself were to be taken seriously ill? Whilst he couldn’t guarantee a replacement could instantly relay the naughty and nice list, key person insurance would help lessen the effects felt.
NFU Mutual’s research also found only 19% of businesses had key person cover yet 65% feared they could be negatively impacted, both operationally and financially, if they were without a key team member.
Mark added: “Key person insurance is designed to help a business continue and overcome the loss of an individual and their contribution; this could be their professional status, their business contacts or technical expertise which is vital to the success of the business.
“It is worrying to see that so many businesses seem to be putting themselves at risk by overlooking these key components of commercial insurance.”
NFU Mutual is urging business owners to check they have the insurance cover they need to keep them operating:
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Business interruption – covers lost income and increased working costs following damage to a property. This can be extended to include other disruptions to suit your business
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Recruitment cost cover - cover for the cost of recruitment for key employees
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Tailored employee cover - the option to tailor your cover for individual employees to meet your business needs and budget
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Business continuity cover - financial support for your business during times of staff transition
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Consideration for significant shareholdings or partners which focusses on maintaining business stability and continuity.
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