‘We help our members grow through a variety of networking opportunities.’

Cutting insurance in risky business

Newry based businesses must avoid falling into the trap of reducing their insurance protection as a means of meeting economic challenges. That’s the message from two of the north’s largest financial service brands, Northern Bank and Hughes Insurance after recent research on commercial insurance found that two thirds – 67 per cent – of broker respondents have seen a cut in its levels. The research published by the British Broker’s Association indicates that the removal that is seen to be ‘non-essential’ commercial insurance cover such as business interruption, legal expenses, theft, accidental damage, personal accident and travel by business has become increasingly common. Other businesses meanwhile are opting to reduce sums insured and increase excesses in a bid to reduce premiums. But Mark Watson head of Northern Bank Newry Business Centre warns that the current economic climate in fact means being well insured is more important than ever. “While it is understandable that businesses are reviewing their finances in a bid to remain as efficient as possible it simply does not make sense for them to be their customers their employees and themselves at risk by not being adequately insured as a result of reducing their cover,” he said. “I would strongly urge all businesses against this.” Cormac Hardy, Hughes Insurance Business Development Executive for the Newry area agrees. “By cutting corners and reducing their insurance coverage, businesses are leaving themselves exposed to great risk,” he says. “Amid the ongoing challenges faces by local businesses as a result of the recession it is essential that companies have the correct protection in place and with the right advice from an insurance broker, these are available at competitive prices.”