JASON MELLOW: Tips to safeguard your business this festive season

The festive season can be a stressful time for business owners who are often forced to deal with reduced staff counts, increased demand for goods and ever-evolving stock inventories. While many others tend to clock off come mid-December in search of summer sun, those tasked with keeping a business afloat are typically faced with numerous challenges, which may include increases in road accidents, theft of stock in the retail sector as well as the ever-present risks of goods being transported.

So, what can business owners do to safeguard their operations and reduce their risk during this typically chaotic time? It all starts with thinking ahead. By identifying and mitigating the potential pitfalls that might arise during the festive season, those in charge can pre-empt possible risks and take appropriate measures to ensure that the business is covered for any eventuality.

From new technology to tried-and-tested techniques, there are plenty of ways in which businesses can get ahead of the game and minimise potential losses during the festive rush. Here are some top tips to help make this season a little less stressful:

• Make sure you’re covered. The festive season tends to bring about a variety of changes from an operational perspective, with many enterprises having to work with fewer staff members, and, in the case of retail stores, a greater stockpile of merchandise. Naturally these factors can affect any business’s risk profile, so it’s important to check with your insurer to make the necessary provisions.

You might want to consider, for example, a seasonal increase in cover over the festive period, upping the amount for which you’re insured to prevent damaging financial losses in the event of theft. You could also add cover for certain elements of the business where gaps have been identified or investigate a more specialised form of cover tailored for your sector, such as restaurant or heavy commercial vehicles insurance, which could include cover for goods in transit, staff dishonesty and the like.

• Reduce risk wherever possible. While it’s important to know that your valuables are covered for any eventuality, it’s also important to introduce systems and processes within your business designed to minimise your risk. For example, you’d be well advised to educate your employees with regard to your alarm system, ensuring that it’s appropriately monitored at all times to avoid a potential security breach. This is particularly important if you have temporary staff to assist during the holidays, who should be appropriately briefed regarding your security processes.

If you have CCTV cameras installed, it’s important to ensure that these are regularly monitored and that your security company sends you detailed reports, so you’re able to keep tabs on suspicious behaviour or any potential blind spots. When it comes to your physical premises, particularly if you’ve got extra stock during the festive season, you might want to explore various smart CCTV coverage options, which can be monitored using artificial intelligence (AI) capable of detecting suspicious behaviour or abnormal activity. Remember, by introducing more stringent security systems, you could end up saving on your monthly insurance premiums, which are inherently linked to your overall risk profile.

• Explore new technology. Technological advances in the past few years have resulted in the advent of numerous devices, which can be used to effectively reduce risk within a business. For instance, telematics devices, capable of measuring vehicle positions, routes and speed, could be extremely useful for a logistics business and prove invaluable in the event of an accident. The same goes for dashcams, which can supply real-time information to fleet owners, allowing them to monitor driver behaviour and intervene in the case of any potential anomalies.

Tracking devices are a must for any business using vehicles to deliver goods. Not only can these prove extremely valuable in the event that a vehicle is stolen, but many also offer impact tracking technology, which enables an insurer or security provider to dispatch assistance immediately based on alerts that are automatically transmitted in the event of a collision.

While less technologically avant garde, smoke alarms and sprinkler systems can also offer an additional layer of security for fires, which could be catastrophic to the business.

• Secure your goods. Goods in transit (GIT) insurance is also highly recommended for those transporting merchandise over the festive period, as it protects you and your fleet in the event of an accident or theft. This type of insurance typically makes provision for loss or damage to any item in transit, whether it be due to an accident or theft of goods. This type of insurance cover can also be included to a vehicle already listed on your business insurance policy.

Whether you’re running a retail operation or operating a fleet of heavy vehicles, it’s important to take adequate precautions ahead of the festive season to ensure your hard-earned profits don’t go to waste. By introducing additional security measures and temporarily increasing your cover, you can go a long way towards avoiding potential service interruptions and financial losses, enjoying a well-deserved break after a long, hard year and continue doing business your way.

• Mellow is head of MiWay Business Insurance.