Could you support Scottish businesses through change?

A conversation with Rachael Snody Scott and Lucy Little, Agents of NFU Mutual - Inverness and Elgin Agency.

Scottish businesses are navigating a period of significant change. Rising costs, labour pressures, climate impacts and cyber risk are all influencing how organisations operate and plan for the future. In conversations with Rachael Snody-Scott and Lucy Little, self employed Agents of NFU Mutual - Inverness and Elgin Agency, who sell and advise on NFU Mutual insurance for businesses across Scotland, one message stood out: more businesses are discussing their insurance before making changes - not after.

Why businesses are being forced to change
Across commercial and rural sectors alike, change is no longer optional. Estates, hotels, hospitality businesses, farms and diversified rural enterprises are all feeling the pressure of rising operating costs, recruitment challenges and increasing exposure to risk.

“These pressures are hitting a lot of businesses at the same time,” Rachael explained. “People are having to adapt - whether that’s changing how they operate, investing in new systems, or rethinking parts of their business altogether.”

For many organisations, those decisions are driven by necessity rather than long term strategy. Energy costs, staffing shortages and the need to operate more efficiently are prompting quick operational changes - often with significant implications for risk.

Lucy noted that while the drivers vary by sector, the impact is consistent. “Whether it’s a hotel introducing new services, an estate-repurposing buildings, or a farming business diversifying, any change in how a business operates can alter its risk profile - and that’s where insurance needs careful thought.”

Why insurance needs to be part of the conversation early
What’s changed most across the region, according to Rachael, is when businesses are raising insurance questions.

“More customers are getting in touch before they make changes,” she said. “They want to understand how a potential decision might affect their insurance before they commit - not once everything is already in place.”

While cost pressures often start the conversation, Rachael says it quickly moves beyond price. “People want clarity. They want to understand what they’re paying for and whether their cover still reflects how their business operates today.”

Operational change and insurance alignment
Labour shortages remain a major driver of change, pushing businesses to invest in technology, automation or new ways of working.

“That might mean new systems, new suppliers or different operating models,” Lucy explained. “But each of those changes can affect risk - and therefore insurance.”

From Rachael’s perspective, early involvement is key. “If insurance is only reviewed after a change, there’s a risk it no longer reflects reality,” she said. “Being part of the conversation at the start helps ensure cover keeps pace with how a business is evolving.”

That approach allows insurance to support decisions rather than react to them - giving businesses greater confidence as they move forward.

Climate and cyber accelerating insurance decisions
Climate related disruption is also forcing businesses to reassess risk. Storm damage, flooding and supply chain disruption are no longer seen as rare events - particularly for estates, hospitality businesses and organisations with physical assets.

“People are much more aware of how vulnerable they can be,” Lucy reflected. “That awareness often leads to conversations about whether insurance still reflects the risks they’re facing today.”

At the same time, cyber risk continues to grow as businesses rely more heavily on digital systems, online bookings and customer data. “A lot of people still assume cyber-crime only affects large organisations,” Rachael said. “But if you’ve got an email address, customer data or an online presence, you’re exposed - and that risk needs to be properly understood and insured.”

Confidence through conversation
As pressures increase, Lucy and Rachael are being brought into business planning earlier than ever. “Sometimes people just want space to think things through,” Rachael said. “They want to sense check ideas and understand the insurance implications before they make changes.”

Those early conversations help build long term relationships. “We build partnerships over years,” Rachael explained. “By understanding how a business operates - whether that’s an estate, a hotel, a commercial enterprise or a farming business - we can advise on and provide NFU Mutual insurance that genuinely supports it.”

Lucy sees the value of that approach when customers return. “People sometimes leave to chase a cheaper premium,” she said. “But they often come back when they realise the value of having someone local who understands their business and how it’s changing.”

Looking ahead
For Rachael, the future of Scottish business will be shaped by steady, considered decisions, with insurance playing a key supporting role. “Most change happens gradually,” she reflected. “It’s about making the right decisions at the right time - and having the right insurance conversations before those decisions are made.” In every one of those conversations, having someone local who understands commercial risk remains just as important as ever.

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