Let’s think about a large vineyard, one that has heavy-duty machinery, a café, promotes the vineyard through tours and tasting and may even host weddings. Continue reading “Additional policies and add on covers”
What is Making Tax Digital?
Making Tax Digital (MTD) is a key part of the government’s plans to make it easier for businesses to keep on top of their tax affairs. The aim is to make the process of administrating tax simpler and more efficient. All of your tax information will be in one place, and you will be able to pay tax based on your business activity throughout the year. You will also be able to upload and update your tax account in real time.
Keeping digital records and providing updates to HM Revenue & Customs (HMRC) directly will help reduce errors, cost, uncertainty and worry. This is a major change affecting taxpayers in business, including those who have rental income, and will be compulsory. Continue reading “Prepare for Making Tax Digital”
Here’s a worrying fact for you, seven in 10 business owners said that new risks have emerged since they first started their company, and an astonishing 82% of them have not altered or increased their insurance cover*. If the risks to your vineyard increase and your levels of cover do not, you will be under-insured. Continue reading “Knowing the value of your assets”
What is public liability cover?
Public liability insurance helps to protect your vineyard business from compensation payments and legal costs arising from personal injury and property damage claims made by your customers, passers-by, or people you visit. This cover also includes the cost of medical treatment and transportation costs incurred by the NHS should they claim this amount from your business following an incident. Public liability insurance will cover everything from minor incidents in the work place to large claims that could force you out of business. Continue reading “Public liability insurance”
There are two main reasons why you should take out employers’ liability insurance: firstly, to avoid your vineyard being hit financially by a substantial claim for compensation by an employee being injured or killed at work. Continue reading “Employers’ liability insurance”
PE.DI S.r.l. is a family business founded in 1982. The company, located in the northern part of Italy, is one of the world’s leading manufacturers of crown caps for the in-bottle fermentation of Champagne and traditional method wines. 90% of the production is exported and distributed worldwide. Continue reading “Special closures for the bottling industry”
Here at Lansdown Insurance Brokers we provide tailored insurance protection to vineyards and ancillary trades at the right price. We’re in almost daily contact with vineyards, and through this regular interaction are aware that one of the least understood covers is Business Interruption insurance (or BI insurance as it has become known).
What does BI insurance cover?
BI insurance protects you against loss of income following damage to your vineyard caused by an insured peril such as a serious fire, flood or similar incident.
It also pays for extra costs to keep your business going and minimise any shortfall in income; although for these to be covered they must pass an economic test, i.e. the extra costs save or bring in at least as much as they reduce any claim.
The indemnity period is the period during which your loss of income is covered. This period of time (usually 12, 24 or 36 months) starts from the date of the claim incident.
When choosing an indemnity period, it’s important to consider the amount of time it would take for your business to be able to trade again independently, considering factors such as how long it would take to rebuild damaged buildings, and replace lost contents and stock. Therefore, it’s arguably better to have an over generous indemnity period, rather than one that might fall short.
BI insurance sum insured
Your sum insured should reflect estimated income for the coming financial year. For 24 months, the sum insured will be twice the estimated annual income, and for 36 months, it will be three times.
Material damage proviso
This is a condition within BI insurance, which states that a claim must have been accepted by the insurers of the damaged business premises, before the BI cover can respond. The purpose of this proviso is to ensure that in the event of a loss, funds are readily available to repair or replace property and therefore minimise the time it takes for a business to resume full trading.
Non-damage BI insurance
There could be times when your vineyard may suffer a loss of income caused by a situation where there is no physical damage to your premises or assets, and most BI insurance covers make provision for circumstances of this nature.
Some common examples of this are the business being affected by:
- damage occurring at the premises of your customers or suppliers
- accidental failure of your electricity, gas, water or telecommunications supply
- prevention of access to your business premises caused by damage to neighbouring property
It’s common for these non-damage BI insurance extensions to be insured for a set monetary limit, which will be significantly lower than your selected sum insured for loss of income.
Do you really need it?
Unlike insurance for your buildings, contents and stock, which covers physical damage, BI insurance covers the income your business would have received had the incident not happened. For businesses affected by a serious loss, BI insurance can mean the difference between ensuring a long-term future or folding.