Small firms urged to go for a broker to avoid costly disasters

Insurancexpert said that research has shown that 79 per cent of small firms have no continuity plan if disaster strikes, leaving them unable to carry out work – a situation that potentially leads to insolvency.

The insurance firm said that 65 per cent of business claims last year were related to fire and theft, which can leave small firms without premises or equipment which they wouldn’t be able to replace if they didn’t have cover.

Insurancexpert claimed that businesses increasingly need the services of a broker, due to the rising threats of terrorism, crime and natural disasters.

As well as damage to property or equipment, Insurancexpert said that the resulting delay in work was extremely harmful to the profits of small companies, underlining the need for business interruption cover.

As reported by Startups.co.uk, previous studies have shown that many small firms are unprepared for disasters ranging from power cuts to terrorist attacks.

Although many small companies feel they do not have the time or resources for contingency plans or extra insurance, research has shown that a massive eight in ten small firms who have suffered a disaster eventually go bust.

Derek Gibbens, of Insurancexpert, said that brokers were the best option for small firms looking to update their cover.

“Apart from the standard risk that any business should be aware of, many small and medium sized businesses require specialist insurance needs above and beyond the standard policies available on the market and would benefit from having these needs serviced by their local insurance broker.

“Shopping around for the best insurance policy available has never been more important, especially in today’s turbulent world, and a broker can scour the market for you to find the best deal.

“They have expert knowledge of the thousands of policies available and can negotiate on your behalf to find one that has specialist cover to suit all your business needs,” he said.