Exway has extended its commercial insurance cover with Norwich Union Aviva for the 27th year running, with Exway MD Trevor Barefoot highlighting the importance of having the right insurance cover in place in the current economic climate.

The insurance agreement was negotiated on Exway’s behalf by Exeter-based insurance broker Colin Hardy & Company.

Exway recognised the vital importance of having the correct insurance cover in place when the company’s vehicle accident repair centre in Pinhoe, Exeter was badly damaged by fire in November 2008.

However, Exway’s specialist insurance cover with Norwich Union meant that, within hours of the fire, the company was able to start the claims process through Colin Hardy & Company, loss adjusters Cunningham & Lindsey, and Norwich Union’s local claims handler.

Because the claim was processed quickly and efficiently, Exway experienced a minimum amount of disruption and loss of earnings.

Trevor Barefoot, founder and managing director of The Exway Group, says: “Our recent experience with fire damage showed that, in the current economic climate, it is more important than ever for businesses to have the correct insurance cover in place – and to place their insurance with reputable insurers with a proactive claims handling philosophy.”

He adds: “After 27 years with Norwich Union and Colin Hardy & Company, they fully understand our business and the risks to which we’re exposed. At any one time, we’re responsible for a high value of customers’ cars on our premises, so we require specialist trade insurance to cover third-party vehicles as well as our own fleet.”

Colin Hardy, managing director of independent insurance broker Colin Hardy & Co., says: “Exway take a very pragmatic approach to protecting their business through insurance. But other businesses looking to cut their costs and cover because of the economic downturn could be placing their company in financial difficulties should a major catastrophe occur.”

He explains: “Very few businesses have sufficient reserves or financial resources of their own to survive a serious loss from a fire or a successful claim against them by a third party. Credit from banks is now harder to get and is unlikely to be available to bail out a company following a large loss affecting the day to day trading of the business.

“However, having the right insurance cover in place will ensure that there is no disruption to their ability to continue trading profitably.”

Established in Exeter in 1968, Colin Hardy & Co. provides impartial advice to commercial clients on insurance, claims handling, risk management and business continuity planning.