New research has revealed that businesses that have enjoyed great success since the pandemic struck, particularly in the eCommerce and healthcare sectors, are neglecting to keep up to date with the correct insurance requirements. This is leaving them vulnerable to loss of stock or compensation claims from workers, according to The Times.
The survey reveals that up to four-fifths of companies that have expanded significantly over the past two years are inadequately insured. They may have policies in place, but these have become out of date or unsuitable to meet the needs of a high stock turnover and increased workforce.
The publication quotes the example of baby and children’s brand start-up My 1st Years. At the end of April 2021, the company were thriving as never before, and on track for annual sales of £30 million, after starting from scratch in 2010. They sell personalised toys, accessories and clothing for small children, and count Prince George among their customers.
On May 1 this year, the brand’s head office and distribution centre in Northampton were destroyed in a devastating arson attack. INews reports that over £3m worth of stock was lost in the blaze, plus £1m of equipment, and a 100,00 sq ft warehouse, head office and photography studio were damaged beyond repair.
Fortunately, the business was fully insured, and the £15m damage and relocation costs were all covered by their policies. Founders Daniel Price and Jonny Sitton had to close the business for four and a half months, and oversee an extensive customer refund operation.
However, thanks to their adequate insurance policy, the brand has successfully relaunched with a new logo and an eye on the Christmas market. Price said that he now feels really optimistic for the future, and is proud of the work his team have put in to get the business back up and running.
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