Flint Insurance

Flint Insurance

February 03, 2010 01:00 ET

Businesses Warned Not To Neglect Business Interruption Cover

MIDDLESEX, UNITED KINGDOM--(Marketwire - Feb. 3, 2010) - Thousands of businesses across the UK are putting themselves at risk by not adequately preparing themselves with Business Interruption cover. This is according to commercial insurance brokers Flint Insurance who have revealed that the recession has caused many companies to omit this cover in order to save money.

According to a study from research company Mactavish, the increasing number of organisations neglecting BI cover is likely to lead to losses for many companies and insurers over the next three years. The survey, which was conducted across the manufacturing, construction, retailing and financial services sectors revealed weaknesses in areas such as supply chains, product development and low-cost outsourcing.

Losses from Business Interruption are one of the biggest threats to modern businesses, far in excess of other risks such as damage to property. They can include a number of unforeseen threats such as natural perils and man-made disasters. This has been made all the more apparent in recent weeks; with the adverse winter weather we have experienced causing mass disruption to industry.

According to business insurance specialists Flint Insurance, cases where businesses are being caught off guard by having a lack of BI cover are increasing. A spokesperson commented:

"Unfortunately, due to the financial climate we currently find ourselves in, many businesses are being forced to make cutbacks. One of the areas where this has become particularly apparent is in insurance, where many organisations feel that they can make savings by not taking out adequate BI protection."


"Whilst this may be true in the short term, in the long run it could be false economy and if the unthinkable should happen, businesses can suffer irreparable damage."

To find out more about Business Insurance cover from Flint Insurance, visit: http://www.flintinsurance.co.uk.

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