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Cycleguard offers five insurance tips for independent cycle businesses to consider.
With cycle businesses becoming more and more diversified, trying to find an insurance policy that covers your business and interests correctly can be a daunting task. That’s where Cycleguard can help.
Bicycle shops are becoming increasingly multifaceted, with cyclists now enjoying pre and post-ride coffees, paying for bike fitting and repair services, and taking part in watt bike sessions. So, how do you ensure that the insurance policy you have to protect your business fully covers its specialist characteristics?
When purchasing insurance for your cycle shop, it’s important that you consider your business in its entirety – including any features that may require specialist cover. Just as you would build a custom bike, your insurance needs to be bespoke to ensure it covers the individual needs and requirements of your business.
Around 3.5 million cycles were sold in Great Britain in 2015, with more bikes purchased than new cars registered. And, because cycle traffic has risen in the UK almost every year since 2008*, it’s clear that as a specialist trade, cycle business is likely to continue to grow.
As a cycle retailer, you may be vulnerable to a number of risks and uncertainties. It’s important that you seek insurance that provides cover for all eventualities.
With cycle businesses becoming more and more diversified, trying to find an insurance policy that covers your business and interests correctly can be a daunting task. That’s where Cycleguard can help.
Bicycle shops are becoming increasingly multifaceted, with cyclists now enjoying pre and post-ride coffees, paying for bike fitting and repair services, and taking part in watt bike sessions. So, how do you ensure that the insurance policy you have to protect your business fully covers its specialist characteristics?
When purchasing insurance for your cycle shop, it’s important that you consider your business in its entirety – including any features that may require specialist cover. Just as you would build a custom bike, your insurance needs to be bespoke to ensure it covers the individual needs and requirements of your business.
Around 3.5 million cycles were sold in Great Britain in 2015, with more bikes purchased than new cars registered. And, because cycle traffic has risen in the UK almost every year since 2008*, it’s clear that as a specialist trade, cycle business is likely to continue to grow.
As a cycle retailer, you may be vulnerable to a number of risks and uncertainties. It’s important that you seek insurance that provides cover for all eventualities.
Value of Stock
As a cycle dealer, your stock’s value, including specialist equipment, can be significantly greater than that of shops in other retail categories. Therefore, it’s important to ensure that your items are valued correctly. Imagine a metal rack used to store bicycles unexpectedly breaks, and as a result, it causes damage to other products in your store. If your value average clause (value of stock) is incorrect, payments could be increasingly higher than expected, especially where items are not valued correctly. Some insurers offer policies that are average free helping to reduce this risk.
Exhibitions and Events
Demonstrations, workshops and cycle shows can all be great for business. But, are your items protected whilst exhibiting? There were two incidents recently reported – within the space of six months – of bikes stolen from the vans of exhibitors at cycle shows in Birmingham and London. Luckily, the affected exhibitors were covered. It’s always important to check that your insurance protects you against risks of this kind.
Goods Held in Trust
With businesses such as bike cafés emerging, and the commercial bike industry diversifying in a number of ways, specialist cover is required. For example, if you are repairing a bike in a workshop attached to a bike café, you will have additional liabilities with regards to the customer’s belongings, and goods held in trust. An accident could become a costly affair without the right cover, especially if the bike is specialist.
Security
Between April 2015 and March 2016, 327,000 incidents of bike theft were reported in England and Wales**. That’s over 27,000 personal and commercial bike-related thefts every month! Bikes are becoming more attractive targets to criminals, and as such, could be at greater risk out of hours than ever before. With seasonal stock increases and independent cycle business running as a year-round trade, this could be cause for concern. Having good security features installed may help to prevent such high-level risks, but could also reduce your premiums.
Cyber Liability
At the moment, cyber liability is a hot topic for many industries. It’s a common misconception that hackers are only likely to attack large, high-profile organisations, with many smaller businesses unaware of the high-risk data breaches that could occur at their establishments. Regulations are also changing, requiring businesses to respond to all of their customers within 72 hours of a data breach. Many companies would struggle to comply with this, which is why there are products out there that can help you in your time of need.
The commercial team at Cycleguard accesses products specifically designed to meet the needs of retailers of all sizes. They can guide you through the process of obtaining insurance, ensuring that the cover meets your specialist needs.
Cycleguard is able to source a product that includes:
Average free policies. They remove the average clause to ensure you aren’t underinsured.
Cover for catering and clothing retailing.
Goods held in trust and goods in transit.
Trade contents, including high-value stock and tools, and a 35 per cent seasonal increase in stock sum insured.
Buildings cover.
Public and products liability of up to £5 million and employers liability of up to £10 million.
Cyber liability cover.
Commercial legal expenses cover.
As well as supporting retailers with their commercial insurance, Cycleguard also works with hundreds of independent cycle retailers across the UK, via the Cycleguard Partnership Scheme.
The Partnership Scheme aims to help cycle retailers generate extra revenue through the promotion of Cycleguard insurance to their customers, helping ensure cyclists have the protection they need, whilst also providing a business benefit to retailers too.
To speak to a team who understands your business and provides free advice to cover your needs, call Cycleguard on:0345 450 7171 or email them at:
commercialteam@thistleinsurance.co.uk
To find out more about the Cycleguard Partnership Scheme and how they could work with you, contact them at:
partners@cycleguard.co.uk
*www.cyclinguk.org
**Crime in England and Wales report, Year Ending March 2016
Cycleguard is a trading style of Thistle Insurance Services Limited. Thistle Insurance Services Limited is authorised and regulated by the Financial Conduct Authority. Lloyd’s Broker. Registered in England under No. 00338645 Registered office: 68 Lombard Street London EC3V 9LJ.
