As the Impact of Brexit Remains Uncertain, You Need This Cover
With just a few months left until Brexit takes place on 29th March 2019, the UK and EU have yet to create a solid withdrawal agreement—keeping the possibility of a ‘no-deal’ scenario intact. And although this uncertainty remains, your organisation cannot afford to be unprepared for the potential impacts of Brexit.
Consider these top tips:
- Settle your supply chain—In order to be prepared for any outcome of Brexit, it’s important to engage in supply chain mapping. This includes establishing a concrete, detailed supply chain by identifying where your inputs and raw materials come from, what product category they belong in and assessing any possible tariffs that could apply in different scenarios. This also entails preparing for potential changes in customs procedures.
- Reconsider contracts—Brexit could require business contracts to be renegotiated or terminated—especially any EU trade agreements. Be sure your contracts establish international terms and conditions in the event that a no-deal causes an EU importer or exporter to become an international contact. For additional government information, click here.
- Protect immigrant workers—If your organisation employs EU workers, they must apply for ‘settled status’ to continue working in the UK. You can assist employees with this government toolkit.
Apart from these strategies, securing proper cover for your business is a vital Brexit preparation step that can help protect you from an uncertain marketplace. As the trading environment continues to change and fluctuate, your company needs trade credit insurance now more than ever.
Essentially, trade credit insurance can help ensure your organisation maintains a steady cash flow and receives payments, even if buyers or partners are unable to pay for their goods due to insolvency or bankruptcy in a changing marketplace.
Trade credit insurance typically covers commercial risks, such as when an organisation’s customers cannot pay invoices due to financial reasons, and political risks, which result from customers failing to pay invoices due to factors out of their control (eg a political event, natural disaster or currency problem).
Regardless of the impact of Brexit, purchasing this cover can help keep your company protected in an unpredictable business environment. Contact Johnston Park McAndrew today for more information.
We are Johnston Park McAndrew –Your Advice Led Commercial Insurance Broker
Author: Heather Adams
Credits: "Commercial Insurance Profile January 2019" (Zywave, inc. 2019)
The content of this Profile is of general interest and is not intended to apply to specific circumstances. It does not purport to be a comprehensive analysis of all matters relevant to its subject matter. The content should not, therefore, be regarded as constituting legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly.
© 2018 Zywave, Inc. All rights reserved.
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