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With the right financial advice any small business can handle anything that is thrown at it – less sales, sickness, injury or even a flash flood – the right small business insurance schemes can make a good small business bullet-proof.

But if you are a small business owner who has not got insurance, but has small business loans, then you may be facing arrears and even repossession thanks to loss of earnings and huge damage costs if the worst were to happen.

There is some help for these people – the Federation of Small Businesses recently opened its £500,000 Disaster Recovery Fund for its members in Northern England and Scotland, which have been adversely affected by recent heavy rain and flooding. It is offering interest-free loans of up to £5,000 to help small firms cover costs associated with keeping their business trading and with repair of their premises.

John Wright, national chairman of the FSB says: "The last 18 months have been difficult for FSB members up and down the country, so the last thing otherwise successful small business people need is unpredictable weather and flooding to damage their prospects."

This is a great gesture from the FSB, but those businesses taking the emergency fund needn't of had to resort to the kindness of others if they had got the right cover. A good insurance scheme would make sure a business can afford repairs, can pay debts while not earning and could even allow business people to recoup lost earnings.

Make sure your small business is properly covered should the worst happen. A flood can hit without much warning, as a lot of Brits have found out recently, so don't take anything to chance. Talk to a financial adviser about the right insurance premiums for your business loans.

SOURCE: FSB, 20/11/09

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