Biba warns against lack of cover

The British Insurance Brokers’ Association (BIBA) has launched its 2009 Manifesto emphasising the importance of insurance cover for UK businesses as the recession bites.

Biba is concerned that budgetary pressures could result in firms reducing their investment in insurance cover. It said this could leave firms exposed and even lead to closure if they should be affected by flooding, fire or crime.

Government figures suggest that nearly one fifth of businesses suffer a major disruption every year. Eighty per cent of those hit by a major incident will close down within 18 months.

Biba chief executive Eric Galbraith said: “It is important that all businesses in the UK are resilient and have access to the best advice and affordable cover. Our priority for 2009 is to promote access to and the value of advice from insurance brokers.

“The current economic climate tends to promote a culture focused on price. Businesses and consumers must look at the cover and security provided and seek advice from their broker who is best placed to provide this advice.

“We are particularly concerned about small businesses forced to make cutbacks. They may believe that they can live without insurance until the economy recovers. However, our message is simple - the right insurance cover may be the difference between closure and survival if your business is not adequately protected.

“We want to work with Government to promote appropriate insurance cover, and Biba brokers are committed to providing the best possible advice to firms and organisations across the UK.”

The manifesto also highlights the other key issues BIBA will focus on during the year. They include:

• Regulation –Biba has long campaigned for appropriate levels of regulation for the insurance sector. Biba is a strong supporter of the principle of better regulation and will continue to work to achieve this, including efforts to reduce unnecessary, unfair or outdated regulation
• Motor – Biba is committed to playing an active role in making the UK’s roads safer and improving the ways that drivers can access appropriate motor insurance.
• UK and Europe – In the current competitive and uncertain global economic environment, Biba will continue to play an active role in helping to safeguard the UK’s position as a leading international financial centre.