Move to promote business contigency applauded by FSB
The Federation for Small Businesses (FSB) has welcomed the new joint Association of British Insurers (ABI) and government effort to promote contingency plans for small firms, but has urged that policies remain affordable.
The move follows research by AXA Insurance showing that of the 4.3 million small to medium-sized businesses in the UK, over two-thirds have no contingency plans to deal with an emergency, such as a major flood or fire.
Speaking at a joint ABI, Department for Business, Enterprise and Regulatory Reform and Defra seminar today to launch the ABI’s Insurance for Small Businesses Guide, Stephen Haddrill, the ABI’s director general, said: “We have produced this guide following last summer’s floods. Insurers dealt with over 27,000 claims from flooded firms and paid out £1billion 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.”
In response to the campaign launch, Stephen Alambritis, chief spokesman for the FSB, said: "Anyone talking about contingency plans is a good thing. It's important that word gets out given the current climate of floods and natural disasters. However, we urge the insurance industry to lower the costs. You need to be aware of margins and sometimes it can be tough for small firms to afford the policies."
Pat McFadden, Minister of State for the Department for Business, added: “Small businesses are vital. This latest guidance provides vital risk management advice to help ensure our small businesses grow and flourish.”
