Interesting stats and report from the Federation of Small Businesses (FSB).
New research from the FSB has found that three out of five (59%) of the small business they questioned did not have a plan in place to deal with extreme weather conditions such as floods and snow storms.
This news comes despite the news that two thirds (66%) of small businesses have been negatively impacted by flooding, drought or snow over the last three years.
Mike Cherry, National Policy Chairman for the FSB, said:
"Last year was the wettest winter on record and 3200 commercial properties were flooded in the UK. With such extreme weather events on the increase small business need all the help they can get to make sure they can stay open whatever the weather."
"We remain concerned that small businesses will not be included in the Government's Flood Re agreement, designed to limit insurance costs for those at most risk of flooding. Firms need to be reassured that affordable flood insurance will be available in the future. Currently three in 10 (29%) do not have the right cover in place."
Damage caused by last year's floods cost firms in affected areas an average of £1,531. By protecting against such disruption, small firms can continue operating and avoid financial difficulties. Of those businesses affected by extreme weather, the biggest problems reported, were disruption to staff and customers (46%) and disruption to suppliers, utilities and transport arrangements (32%).
Key Findings:
- 66% of small businesses were impacted by flooding, drought or snow in the past three years.
- 59% of small businesses have no resilience plans to combat extreme weather.
- 29% of businesses do not have insurance for business interruption (loss of income, costs incurred) or damage caused to property by flooding.
So looking at the report from the FSB, do you think it applies to your business? Are you one of the 3 out of 5 businesses that don't have any cover or plan in place to combat extreme weather conditions?
Or do you consider your business safe from adverse weather? Can you continue to operate if your business premises are unavailable for an undetermined time?
Maybe take it a step further, do we need to look at critical suppliers? eg: If you are dependant on your website for business, what is your hosting providers plan or SLA's for extreme weather or conditions? Should we be asking them?
