Aba Group Advises Businesses on Loss of Revenue Insurance in The Wake of The Leyland Fire
Loss of Profits Insurance should be a vital part of every business’s, business continuity processes. This was made devastatingly apparent when a fire broke out in December at the Lancashire Enterprise Business Park in Leyland.
Loss of Profits Insurance should be a vital part of every business’s, business continuity processes. This was made devastatingly apparent when a fire broke out in December at the Lancashire Enterprise Business Park in Leyland which destroyed at least five buildings.
The fire was thought to have started in a warehouse storing toilet roll, which investigators described as ‘ready-made fuel’. This, when combined with the minimal spacing between business units, allowed the fire to spread quickly, leaving destruction in its wake. WH Bowker, an affected family firm, claims that the value of the damage amounts to around £20m, but they have minimised the disruption by moving operations to a nearby warehouse to help support their supply chain.
Due to the nature of the damage, those businesses who are covered, that cannot resume operations within seven days, should be able to make a claim. In this case, provided that the necessary projections were made, their insurers should be able to cover the damage and loss of profits or revenue so as to restore these companies to the same financial position they were in before the disaster.
The aba Group’s Managing Director, Graham Webster stated:
“Disasters like this simply can’t be foreseen, and it demonstrates just how important it is to have tailored, comprehensive insurance cover. Had WH Bowker, not been covered, the business may have failed and indeed those businesses who were storing goods in the Bowker’s warehouse could also have failed without adequate insurance cover. When the cost of the damage is compared to the cost of a suitable insurance premium, it’s rather negligible for the peace of mind a good policy provides. It is therefore critical that business owners consider their susceptibility and determine whether or not they can afford to rebuild their business without help from an insurer in the event of such an incident”
In a situation where freak incidents like fire, storms and heavy snow cause damage to buildings and assets, an insured business may expect an insurer to cover the cost of their repair or replacement. Loss of profits insurance however, will ensure that any resulting loss of revenue due to an inability to trade is covered if the business is unable to resume normal working activity within a week. A business interruption insurance policy will ensure that, in the event of a successful claim, any on-going expenses are paid for and profits are maintained.
“The problem for many businesses however is that setting up a loss of profits insurance policy can be quite complicated. It is critical that any company growth, acquisitions or changes in business are accounted for to ensure that a successful claim adequately covers the needs of the business. As specialists in risk management however, we are able to advise businesses on how to manage these risks and on how to best choose and implement a loss of revenue insurance policy to suit their needs” says Mr Webster
Few businesses recover from a serious interruption in business without this kind of cover, so it is important then for businesses to protect their earning power whether they decide to cover a loss of gross profit, or get a loss of revenue insurance policy.
“Our polices are able to cover the costs of minimizing the disruption so that business owners can try to work through these incidents without having to worry about where the money will be coming from. We are happy to provide advice to those who are unsure about what policy is best for them, to ensure that they have all the cover they need ” adds Mr Webster.
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About aba Group:
aba Group has been operating in Bolton for years, headed by Managing Director Graham Webster and fellow Director Lynne Eckersley, they have 70 years’ experience in the industry between them. Their specialist insurance coverage spans schools and academies, directors, officers, contractors, engineers, landlords and a whole host of other professional roles and activities; which has seen them become the go-to business insurance brokers locally.
For further information contact:
- Contact Information
- Graham Webster
- Managing Director
- aba Group
- (44) (0) 1204 364 842
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