Almost half of small UK firms are unprepared for severe weather
Despite new research revealing that two-thirds of small firms suffer from a loss of revenue after’severe weather, some 44 per cent of owners have no contingency plan in place to continue trading when the weather turns.
The study, conducted by insurance firm Towergate, found that small companies in Britain lost an average 14.7 hours a year as a result of’severe weather.
However, a closer look revealed a more significant impact on the engineering and constructions sectors. Small firms in these outdoor industries stood to lose three working days every year every because of bad weather.
Recent bouts of heavy snow and rain have hit the UK, resulting in cancelled flights from Heathrow and Gatwick, as well as evacuations on the east coast of England where?the army has been called into assist residents.
The main cause of disruption for almost a quarter of businesses was the inability of employees to get into work, while 15 per cent reported that supply chain issues affected trading.
Too wet to shop?
For small businesses relying on footfall and customers through the doors, severe weather poses an even greater threat to profits.
Retailers that adopt a bricks and clicks? strategy using a web presence alongsidethe in-store offering can combat against this additional loss of revenue by reaching their customers even when they decide to stay indoors.
The study also found that over two-thirds of small firms remained uninsured from the effects of’severe weather. It was estimated that the average small business risked damage to property and assets worth 523, 934 from flooding, high winds and heavy snow.
Commenting on the findings, Towergate’s advisory CEO, Joe Thelwell, warned small business owners to ensure that proper continuity plans were in place to protect against lost business and unexpected bills? as a result of severe weather damage.
Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.
Insurance is crucial for businesses, whether they're startups or longstanding companies. No business owner likes to think about suffering any losses as a result of events outside of their control, but it's paramount that businesses have a safety net to fall back on. more»