Understanding your business insurance needs as a cycling business - ACT and Bikmo
Posted on in Business News , Cycles News
In a cycling business where risks vary wildly by size, services, stock and setup, understanding your specific exposures, choosing a provider who truly knows the industry, and regularly reviewing every activity you perform ensures your insurance evolves with you and actually protects what you’ve built. Joanna Evans, Head of Bikmo for Business, explains in the first of a series of articles.
I'll be honest: insurance is probably the last thing on your mind, most of the time. I’ve spent years helping retailers, guides, mechanics and everyone else in the business of bikes protect what they’ve built.
Over the course of a few (hopefully) snappy articles, I’ll give you the tools to understand the whys, whens and how much of insuring your cycling business.
From XXS - XXL. Size matters.
There's no one-size-fits-all approach to business insurance. Your risks aren't the same as the shop down the road, and that's exactly how it should be.
Take stock theft, for example. The retailer protecting £50k worth of bikes with a basic alarm that couldn’t wake a sleeping dog has a considerably different risk profile to the retailer protecting his warehouse with a police response alarm, sound blasters, and smoke protection.
Understanding your specific risk is the first step to mitigating it.
Getting the Right Advice
You employ bike obsessives for a reason. They give expert advice in an area they’re deeply invested in. Your broker should do the same for your insurance. Generic insurance advice breeds generic results and could leave you exposed if something very specific happens.
A good tip is to check out your prospective broker’s Statement of Fact (the document with your quote confirming what they know about your business). Does it show they understand your business, and your industry? No? Then perhaps steer clear.
Here are some of the things that a good specialist broker should be asking:
- Which cycle retail specific activities and services you offer eg. maintenance classes, bike fitting, demo/hire bikes
- Proportion of retail and workshop revenues (this can affect price)
- The value of bikes/parts (goods) you deliver to customers
Beyond the Basics
When was the last time you actually listed each and every activity that you perform in a season? From community rides to bleeding brakes, every activity that brings you in contact with your customers exposes you to risk. Are you insured for everything or just the basics?
Your insurance should reflect your full operation, not the business you were 12 months ago. Give your business a seasonal service and see how many gaps you might need to cover.
Review and Evolve
As your business evolves, your insurance needs to evolve with it. That basic retail policy you started with might not cut it anymore if you've added a workshop or started running community events. Regular reviews are essential, not just when renewal comes around, but whenever you're adding new services or significantly growing your stock levels.
Understanding your specific risks is the first step to getting insurance that actually works for your business. It's not about having the most expensive policy, it's about having the right cover for what you actually do.
Next time, we’ll dive deeper into the essential components of insurance.