Insurance body highlights importance of continuity planning
Commercial insurance
5th January 2010
Many small businesses in Britain are not suitably prepared for incidents and may not survive a disaster such as a flood, fire, pandemic or terrorist attack, an insurance industry body has declared.
Research carried out by the British Insurance Brokers' Association (BIBA) found 45 per cent of 200 small firms polled have rough or no plans in place in the event of storms, although £3 billion worth of flood claims have been filed from 2007.
With 80 per cent of companies affected by a major incident collapsing within 18 months of it taking place, the organisation has urged the government to do more to address this problem.
Businesses are at particular risk from such threats during the economic downturn and BIBA technical services manager Steve Foulsham has urged small enterprises to "urgently speak to their broker to ensure they are properly covered", as only 37 per cent of respondents have credit insurance protection in place.
Business owners may also be interested to learn that a recent survey by US company VMware indicated 47 per cent of small enterprises polled had revised their business continuity plans in the past two years.
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