The recession spells trouble for companies' insurance policies, according to insurance group, Aviva, which suggests that if it's not lapsed policies that brokers are seeing, then it's reduced cover.

Their publication, Your Practical Guide to Recession, which was put together to provide brokers with tips on how to weather the recession and lessen its impact on customers,

Says Janice Deakin, corporate sales director at Aviva: "With customers increasing their propensity to switch, and a higher demand for voluntary excesses and/or reduced cover, brokers with the greatest customer knowledge will be best placed to adapt services and products to meet clients' changing needs. The stronger the relationship with insurers, the more likely a broker is to hang on to his customer."

"There are a number of likely impacts as a result of the downturn in the economy. Fraud, which according to the ABI, now costs the UK market £1.9bn, is continuing to grow and we expect to see an increase in arson and theft claims, as well as an overall rise in genuine claims as businesses are less likely to absorb smaller claims," she adds.

"Unoccupied buildings will also present a threat to customers. Buildings under construction or renovation may become mothballed, parts of buildings being unused are at greater risk of flooding and there is potential damage from arson or malicious damage.

She also advises customers to check BI cover and business continuity plans.

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