For many small business owners, the most wonderful time of the year can also be the busiest time of the year! As sales and store visits increase around Christmas as people shop for presents and prepare for the holidays, you may feel overwhelmed, especially if your business has faced challenges during the pandemic.
Between all the hustle and bustle it’s important to take some time to reflect and ensure your business is protected during the festive season, and for the year ahead. Here are 5 reasons why you should review your business insurance policy this Christmas.
1. Influx of In-store Customers
The first thing you need to consider is the increase in customers around Christmas time. If you work in hospitality, you can expect to be busy hosting Christmas parties, family get-togethers and end-of-year work functions. If you own a retail store, more people will be visiting your shop front as they search for the perfect Christmas gifts. In states where lockdowns and restrictions have recently eased, customers are more eager than ever to get out, shop, eat and drink!
With this rise in foot traffic comes the possibility of accidents or injuries. As a small business owner, you have a legal responsibility to ensure you, your staff and members of the public are protected. Imagine if a customer tripped over some new Christmas merchandise and was hurt in your store. Do you have adequate coverage?
If a third-party alleges that your negligent business activities caused them injury, you may face costly legal fees. Don’t let a public liability claim damage your business’ finances and reputation! Now is the time to ensure your Public Liability insurance is up to date.
2. Rise in Revenue
More customers mean more sales! With increased trading, you are likely to have more cash on your premises, so make sure your physical assets are covered against loss. There are many Business insurance cover options, each designed to protect different areas of your operations. The great thing about this insurance package is that it can be customised to suit your needs.
The past two years have seen the popularity of online shopping rise steadily. If you are sending out a large number of orders during Christmas time, you should also consider insurance for goods in transit. Loss or damage caused by collision, natural disaster or theft is typically included. You can’t prevent things going wrong, but you can make sure you are covered!
3. Higher Chance of Theft and Burglary
Unfortunately, the holiday season also sees a rise in theft and break-ins. With a Business Insurance pack, you can pick and choose the cover options that suit you best. For example, General Property Insurance also known as Portable Equipment insurance covers theft and accidental damage to equipment such as tools, laptops and mobile phones whilst you are away. Office Contents Insurance covers burglary, theft and accidental damage to office equipment such as chairs, desks and computers.
As many stores close down over Christmas and New Year, this is the peak time for burglary. If you have a shop front window, you may also want to consider insurance for glass. This covers you for internal and external damage to glass, signage and mirrors at your business premises.
Take some time to list down all the risks that may apply to your business, and how much cover you will need if things don’t go according to plan. Make sure you are prepared for the unexpected and have peace of mind during the break!
4. Increased Online Trading
Your website, online store and social media profiles have never been more important as during the Covid-19 pandemic. Whilst entire states have been locked down, many businesses have taken to the internet to stay connected to their loyal customers. What would happen if your website was taken offline? Could your small business survive the damage to your reputation and financial costs associated with a data breach?
If the answer is no, now may be the time to consider Cyber Liability insurance. Any business that trades through an online platform, uses email or IT systems, or deals with customer data could be at risk. Online shopping will remain popular for some time as people adjust to the new normal – some customers may not yet feel comfortable facing big crowds shopping for holiday bargains. In today’s technology driven world, make sure you have enough coverage for your cyber needs this Christmas.
5. Wild Weather
In recent years, Australia has sadly witnessed some of the worst natural disasters in history. Do you have the right coverage to safeguard your business from bushfires or floods this summer?
Take precaution with building insurance as part of a Business Insurance policy, to ensure your business is protected in the event of a fire. In the event of a fire impacting your business, you have put so much time and effort into building your small business – don’t let it go up in flames.
Flood insurance is typically not included in a Business Insurance policy but may be added on as an optional extension. If you live and work in a flood-prone area of Australia, you may want to consider getting flood insurance as part of your insurance pack.
You may also want to think about Business Interruption cover. This provides protection for the loss of income and increased costs of operating your business caused by a specified insured event (such as property damage or fire). It is also designed to assist your business to recover from an insured event by paying ongoing expenses (such as wages or rent).
Unfortunately, wild weather events can take you and your business by surprise. As unpredictable as the climate can be, you can plan ahead and get insured.
Conclusion
The insurance needs of an online retailer will be different to the needs of a store operating in a shopping mall, which will be different again to the needs of a store on the main street. Different small businesses require their own unique forms of cover to protect them from the particular risks of their industry.
Make sure your insurance is up to date this Christmas with BizCover. We deliver multiple quotes from a great range of trusted leading Australian insurers straight to your inbox in minutes.
* This information is a general guide only and does not take into account your objectives, financial situation or needs. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.
