You may have recently read that Starbucks are planning to offer wine to their customers in the evenings, adding an extra string to their already profitable bow. Many businesses are now realising that the way forward is by looking for new and interesting ways to draw their customers in.
A recent survey* of 500 SMEs conducted by Aviva shows that diversification in businesses, by expanding their product offering or targeting new customers, has increased 50% since 2012.
However, if your business is considering diversifying it is important to consider how this will affect your insurance and to check whether you are still appropriately covered.
Our top tips
- Business description – It’s important to ensure your business description is accurate. Not mentioning a business activity could cause problems when making a claim
- Make sure you read the small print – Not abiding by a warranty or condition could render a claim void even if the condition has nothing to do with the claim being made
- Check whether your Health & Safety policy is up to date and reflects your changing business
- If your business continuity plan was written a while ago or your business has grown or changed it may be worth checking your plan is still adequate
Worryingly, the survey also found one in five SMEs admitted being unsure that they have the right insurance for their business. Add another ten percent who say they are operating without any insurance cover and it shows that there are still too many businesses leaving themselves in a vulnerable position.
Protecting everything you have taken the time and money to invest in makes perfect sense, our advice is to review your policy regularly with your broker, especially if you are considering changing the way your business operates to make sure you have the right cover.
*Aviva SME Winter Pulse produced Jan 2014
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