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As the cost of living crisis continues to bite, business owners are seeing a negative impact on their bottom line. A poll by The Motor Ombudsman revealed that 79% of workshops stated that the increase in prices may impact their business.
Recurring themes highlighted in the survey were a trading environment dominated by rising costs, a diminished pool of qualified technicians to recruit from, coupled with increased salary demands, and customers putting off routine repairs due to having less disposable income.
This led to six in 10 of those polled to suggest they would need to increase costs, allowing them to remain profitable in the face of higher overheads.
The current economic climate has led to further concerns for business owners that they run the risk of being underinsured. As the cost of, for instance, building materials and labour rise, then so do the costs of repairs or a rebuild in the event of a claim.
While underinsurance may be due to an oversight by a policyholder, it may also reflect action taken by the policyholder to reduce their premium by not declaring their sums insured accurately. Doing this not only increases the risk of financial loss, it can also void insurance cover altogether. Since bodyshop and garage premises are likely to be an owner’s highest value asset, and integral to the smooth running of the day-to-day operations, it is essential to ensure the right level of cover is in place.
Contact: Karen Reed, Director of Motor Trade
T: 07518 839613, E: karen.reed@pib-insurance.com