The Association of British Insurers has launched a small businesses guide in conjunction with the Government to raise the level of contingency planning among the UK’s small firms.
According to the ABI seven out of 10 small firms would go out of business if they experienced a major emergency in their first year.
Speaking at a joint ABI, Department for Business, Enterprise and Regulatory Reform and Defra seminar today ABI director general Stephen Haddrill says: “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 £1bn 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.”
Minister of State for the Department for Business Pat McFadden says: “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.”