The Association of British Insurers has joined forces with the Government to seek to raise the level of contingency planning among the 4.3 million small to medium-sized businesses in the UK.
According to the ABI, many firms are in danger going out of business due to lack of planning for the unexpected. Seven out of 10 small firms would go out of business if they experienced a major emergency in their first year, with over two -thirds having no contingency plans to deal with an emergency, such as a major flood or fire.
Speaking at a joint ABI, Department for Business, Enterprise and Regulatory Reform and Defra seminar today to launch the ABI’s Insurance for Small Businesses Guide, Stephen Haddrill, the ABI’s Director General, said: “Small to medium-sized firms are particularly vulnerable to the unexpected event that could bring them down. We have produced this guide following last summer’s floods, when insurers dealt with over 27,000 claims from flooded firms and paid out £1billion to them. During that time it became clear that many firms had inadequate or no plans in place to help them survive a major incident. I urge all firms to plan for the unexpected-doing so will make the difference between survival and going under should the worst happen.”
And Pat McFadden, Minister of State for the Department for Business, said: “Small businesses are vital. The millions of people who launch, lead and work for small businesses up and down the country create vital jobs, provide essential services and generate significant wealth for the country. This latest guidance provides vital risk management advice to help ensure our small businesses grow and flourish.”
About the guide
Research was carried out by AXA Insurance. The ABI’s Insurance for Small Businesses: a guide to protecting your business, will be available on: www.abi.org.uk/SMEGUIDE. It is being distributed to small and medium-sized firms through insurers, local authorities, business groups and the police.
