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The British Insurance Brokers' Association has found that less than half of small businesses could survive a major incident such as a fire, flood, act of terrorism, or a pandemic thanks to a lack of insurance.

Independent research commissioned by BIBA has revealed that 45% of businesses have no, or at very best, rough plans to deal with the effects of flood or storm damage, for example. This is despite the £3bn of flood claims from 2007 and that 80% of businesses affected by a major incident close down within 18 months.

The research has revealed that the number of small businesses who claim it would take more than six months for their business to recover has nearly trebled. In this economic downturn every penny counts, so losing out because of missing insurance products would hit business harder.

How would you fare if your home or your office was damaged? How much would it cost you to replace stock if it were destroyed? Could you pay your mortgage if you were injured for a long time?

Steve Foulsham, BIBA technical services manager says: "We still have concerns that businesses are still not adequately protected. Every business needs to be properly prepared for a major incident. I urge every small business to urgently speak to their broker to ensure they are properly covered."

To say that your business is immune to catastrophe as a result of an act of man or nature is foolhardy. Those businesses affected by floods, by storms, by terrorism or by an accident will tell you how important insurance is – those who had were much more likely to survive the incidents that befell them than those who did not consider it a priority. In good times and in bad, insurance is always a priority.

SOURCE: BIBA, 30/12/09

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