Liability & Indemnity

Small business at risk from lack of protection against the elements

Fred Heritage | 19 January 2016 | 9 years ago

shutterstock_356203007
Underinsured small business owners risk losing 74, 000 in property damages due to adverse weather
Adverse UK weather conditions damaged the revenues of three out of five small businesses in the last year, new research has shown, with over a third of owners admitting to not having a business continuity plan in place for such conditions.

Small firms lose two working days a year on average, according to the survey conducted by insurance broker Towergate, with staff being unable to get to work given as the most common reason for loss of trade.

Reduced demand for goods and services due to bad weather meant that 24 per cent of small businesses lost out, whilst 19 per cent reported that poor conditions actually prevented work from being carried out.

The research also found that three out of five small businesses remained uninsured against floods, strong winds, thunder and lightning, snow, ice or hail, despite 37 per cent having experienced property damage as a result of such conditions in the last five years. Owners risk 74, 000 worth of damage to property a year on average, the findings suggested.

Commenting on the research, Towergate’s Drew Wotherspon said: Too many firms are not protected against the erratic nature of British weather and risk bills for substantial damages whilst losing out on business earnings.

it’s vital that small business owners take heed of weather warnings and take precautionary measures to allow them to get back to business as quickly as possible, he added.

Small businesses in Wales and the North West of England reported the biggest losses to revenue outside of London. The research found these regions to be the worst hit by adverse weather whilst having the largest proportion of underinsured small firms. Nearly four out of five small businesses in Wales reported revenue losses due to poor weather, compared with the UK average of 69 per cent.

On 9 December last year, the government announced a 50m repair budget for homes and businesses affected by adverse weather conditions and flooding in the wake of storm Desmond.

Wales, Cumbria and Lancashire were found to be the most heavily affected by the storm, with professional services firm PwC predicting damages of up to 500m to the region’s businesses at the time.

Related Topics

Public Liability and Professional Indemnity Insurance: What’s The Difference?
6 April 2023

Public Liability and Professional Indemnity Insurance: What’s The Difference?

Read More →
What Insurance Do I Need For My UK Business?
3 March 2023

What Insurance Do I Need For My UK Business?

Read More →
What is Product Liability Insurance and Do You Need It?
1 February 2023

What is Product Liability Insurance and Do You Need It?

Read More →
What is Employers Liability Insurance?
20 December 2022

What is Employers Liability Insurance?

Read More →
What is Public Liability Insurance and Why Do I Need It?
5 December 2022

What is Public Liability Insurance and Why Do I Need It?

Read More →
Product liability insurance claims: Here are the facts
18 September 2021

Product liability insurance claims: Here are the facts

Read More →

If you enjoy reading our articles,
why not sign up for our newsletter?

We commit to just delivering high-quality material that is specially crafted for our audience.

Join Our Newsletter