TWO thirds of SMEs lose revenue due to adverse weather, yet nearly half have no business continuity plan in place
Research from specialist insurance broker Towergate, which has offices in Northampton and Kettering, has revealed that many of the country’s micro, small and medium-sized enterprises are ill-prepared for the affects of bad weather.
With 66 per cent of SMEs reporting lost revenue due to bad weather and almost a third (31 per cent) having suffered weather-related damage to property over the last five years, it is surprising to find that nearly half (44 per cent) have no business continuity plan in place to ensure they can continue trading, while over two thirds (69 per cent) do not have any insurance cover to protect them.
Towergate Insurance Brokers nationwide research found SMEs were being hit hardest by employees being delayed or prevented from reaching work (24 per cent). Reduced demand for goods and services (16 per cent) and disruption to their supply chain (15 per cent) were also common problems caused by bad weather.
Despite the majority of SMEs losing revenue due to the weather, a worrying high number remain uninsured with the national average at 69 per cent.
Commenting on the findings, Peter Robinson Area Director for Towergate Insurance Brokers in Northamptonshire, said: “The UK’s economy depends on small and medium sized businesses. But far too many firms have left themselves exposed to the unpredictable and at times damaging British weather. The majority of SMEs do not have appropriate contingency plans or insurance to protect them against lost business and unexpected bills resulting from the havoc our weather can wreak.
“With millions of people’s livelihoods depending on SMEs, it is crucial that these businesses take steps to better prepare for bad weather so they can get up and running as soon as possible. Practically, that could include backing-up computer systems and records, identifying contingency premises or taking out specific policies.”
Towergate’s recommendations for SMEs to keep them trading through the bad weather:
– Have a list of emergency contacts such as roofers and plumbers easily accessible.
– Ensure you have contact details for the landlord or managing agent, and your insurance provider.
– Put in place an emergency contact process for employees and ensure they are familiar with the processes and scenarios in which they should be used.
– Identify potential alternative premises or business locations to temporarily relocate if necessary.
– Always back-up computer records and store copies off site.
– Ensure any important paper documents are stored in a fire and water-proof cabinet, that copies are kept off-site and consider creating digital copies.
– If the premises are unoccupied or become unoccupied you should notify your broker or insurance company, and utility supplies should be turned off at the mains.
– Insulate all water pipes and tanks in the building which could be liable to freezing.
– Locate your main stop cock where the water enters the property – make sure all staff know where and how to stop the water in the event of an emergency.
– Make sure someone regularly inspects the building, knows where utility supplies can be turned off and who to contact in the event of an emergency.
– Where possible, leave the heating system on, if not possible turn water off at the mains and drain the pipes and tanks.
For further information on business continuity planning please click here www.towergateinsurance.co.uk/liability-insurance/business-continuity-planning-winter