Boris Johnson - "We are going to leave the EU on 31 October"
This date is not far away now and businesses across the country are preparing for whatever the outcome may be. Stockpiling has become a popular practice for a large number of businesses which involves importing and storing more goods and materials than they would typically need. Stockpiling is being undertaken in order to help minimise any disruption they would likely see if there were delays in items being shipped from the EU as well as helping avoid any increased import taxes that could be applied after 31 October.
It has been reported that over 25 per cent of businesses are currently stockpiling or are planning to do so in the near future to help prepare for Brexit. This is seen to be the perfect way to avoid business disruption or operational issues but it does also open businesses up to additional risks that they may not have considered, including:
66 per cent of employees working in firms that are currently stockpiling have said that the practice is limiting their organisation's ability to expand and grow.
60 per cent of workers believe that stockpiling has impacted on their recruitment activity in a negative way, with 51 per cent feeling the same in regard to promotion possibilities. In addition, 64 per cent of employees say they have missed out on pay rises because their company has chosen to invest in stockpiling instead.
These concerns may not in fact be a true reflection of the actual situation in these employee's organisation but it is the perception that has been created. This, therefore, highlights the importance of implementing the following guidance if you plan on using stockpiling within your organisation:
Stockpiling will take up more of your funds that might ordinarily have been the case a few years ago which could leave you with issues making payments on other business expenses including rent, payroll and insurance cover. We have seen an increasing number of companies asking to look at premium finance options to pay their insurance premiums over twelve months rather than having to make a payment for the full amount in one go. Please contact us on the form below or get in touch with your usual A&T contact if you would like to have a look at premium finance options moving forward.
Stockpiling could leave you without enough cover from your insurance policy. It's vitally important that you let us know if you need to increase your sums insured because you have increased your stock levels and we can ensure this is updated on your policy.
For more guidance on insurance solutions for uncertainty, such as premium finance or trade credit cover, contact a member of the team today!
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