Attire Accessories - Feb/Mar 2019 (Issue 74)

110 Cover your back Neil Macfarlane, chartered insurance broker and CEO of TH March, answers your questions about insurance Q: If I plan to exhibit at a trade show, do I need to inform my insurance company? A: It is always a good idea to inform your insurance company, as there can be insurance implications and various problems that might occur from misunderstandings over the level of cover provided under standard insurance policies. For exhibitors, there’s the risk associated with attendance at the trade fair itself, and you need to make sure you have the following covered: • Stock and trade stands, fixtures and fittings. Does your policy extend to cover attendance at trade exhibitions? If so, is the extension sufficient to cover the values at risk? Commercial policies are traditionally subject to an under-insurance condition, which means that if you insure for 50 per cent of the value taken to the exhibition, any claim you make will be reduced by 50 per cent. • Public Liability. Notify your insurers that you plan to attend trade exhibitions, as there may be exclusions within your policy. • Exhibition event organisers can demand a minimum level of cover. While this can be purchased separately, it is often cheaper to increase the limit under the annual cover rather than take out small extensions to cover the individual exhibitions attended. • Loss of profits: Does your policy provide cover for loss of profits arising from problems at the event? Most policies will not and do require specific extensions. This cover is not widely available, but some insurers will give cover. For example, a fire on your stand that causes damage to property, leading to a loss of profit arising from the event, can be insured against. Again, you will need to have told your insurers that you are attending events. Q: When dispatching goods sold at my show stand or from my premises, what should I be aware of, and what needs to be included in my insurance policy? A: The extent of your insurance can include all shipments of goods within the UK, whether by your own or hired vehicles, haulage contractors or post and delivery services. It is important to be aware that many carriers restrict their liability for loss or damage to the goods FURTHER INFORMATION TH March is a chartered firm of insurance brokers. Established in 1887, the company has offices in London, Birmingham, Manchester, Glasgow and Sevenoaks, as well as its National Administration Centre in Yelverton near Plymouth. To find out more, call +44 (0)1822 855 555, email giftware@thmarch.co.uk or visit thmarch.co.uk they carry. This could leave you seriously out of pocket in the event of a claim. However, arranging your own insurance protection can solve this problem. Overseas shipments (imports and exports) can also be insured from place of origin to destination. Insurance is usually offered by freight forwarders, and monetary limits may apply in all or part depending on methods of transport – often, there is more than one (e.g., road, air and sea). Q: What is Business Interruption Cover, and should I have it? A: As an example, imagine you’ve been flooded. Clearly your business insurance policy will cover flood damage to premises and stock. If you also have Business Interruption Cover, additional costs such as hiring temporary premises will be met. This means you’ll be able to continue trading during the consequent repair and clean-up period, enabling you to maintain both cash flow and customers. Business Interruption Insurance will also replace the gross profit for your business for the period that the business is interrupted by an insured risk, such as a flood. This covers the recovery of customers phase. Business Interruption Cover will cushion you from the blow and may even be the vital factor that saves your business. Many who don’t have such cover will go out of business within 12 months of a major incident.