Have you sorted your insurance for Christmas?

With the uncertainty and disruptions of 2021 still upon us, you might be looking to Christmas as a time to put your feet up while your business keeps humming. Take some time now to sort things out so you can really relax.

Almost six in 10 small business owners expect to be overworked and miss out on sleep because of the extra demands leading up to and during Christmas. Here’s how to make sure the grinch doesn’t steal your quality slumber.

Safeguard your cash

As the festive season nears, chances are your business will experience a run of orders and deliveries. If that means there’s more cash and stock on your premises, you’ll need to manage that extra risk with tighter processes for security. Extra stock and more customers on site can create more opportunities for shoplifting, too.

As your Broker/Adviser, we can help you review your insurance to ensure you have enough cover for your increased trade. Goods in transit insurance will give you peace of mind, too, if your business makes Christmas deliveries. Supply chain chaos also looks likely during the Christmas trading season.

Protect yourself from public (and product) liability

Whether you run a retail business or not, there could still be heavier foot traffic on your premises. If you host Christmas parties involving alcohol on site, you’ll also need to be mindful of the safety of guests. Be vigilant no one lets their guard down when it comes to safety – think slips, trips, falls, even overstocked shelves, as possible issues that cause accidents. This is where public liability insurance comes in to cover death or injury.

Note that product recalls are more likely during Christmas due to increased sales. That can affect you as a manufacturer, distributor, or retailer in the short term with disgruntled customers and longer-term with a damaged business reputation.

Make sure your sum insured is up to date

With the likelihood your business will have more stock during the festive season as you include new product and service lines, you’ll need to check your sum insured. Underinsuring leaves you out of pocket should your business be the victim of significant damage such as a natural disaster.

Underinsurance is a major problem in Australia, with eight in ten businesses skimping on coverage, says the Insurance Council of Australia. Significantly, up to eight in 10 Australian businesses are underinsured. This leaves them out of pocket or worse, without a business, if a major (successful) claim is made against them or they need to rebuild after a disaster.

Be prepared for wild weather

And wild weather could be on the cards, according to the Bureau of Meteorology. In mid-September, it forecast a 50% chance of a La Niña wet weather pattern forming in the southern hemisphere in spring. That means double the chance of heavy rainfall in northern and eastern Australia during spring and summer. As well, Christmas is the time of natural disasters such as cyclones, wild thunderstorms, floods and bushfires in Australia.

We’re on hand to guide you through the above risk management issues to help you review your insurance cover. So remember to add this task to your Christmas wish list. That way you can keep your focus on cashflow and festivities!